A Risk Control Strategy That Attempts to Eliminate or Reduceany

question 17

Multiple Choice

A risk control strategy that attempts to eliminate or reduceany remaining uncontrolled risk through the application of additional controls and safeguards.

• A)defense risk control strategy
• B)mitigation risk control strategy
• C)acceptance risk control strategy
• D)termination risk control strategy
• E)risk appetite
• F)cost-benefit analysis
• G)cost avoidance
• H)asset valuation
• I)organizational feasibility
• J)single loss expectancy

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Liability

A financial obligation or debt owed by a company to another entity.

Consolidate Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the group as a single economic entity.

Controlling Interest

Ownership interest in a company that is sufficient to control the company's policies and management decisions, typically through a majority of voting rights.