Which of the Following Is Not Characteristic of Good Risk

question 31

Multiple Choice

Which of the following is not characteristic of good risk management?

• A)estimating the likelihood of chance events occurring.
• B)planning to eliminate chance events.
• C)identifying potential chance events.
• D)formulating contingency plans in the event of chance events.
• E)analyzing the consequences of chance events.

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Definitions:

Scienter

Knowledge of wrongdoing or fraudulent intent in legal contexts, essential for establishing liability in some cases.

Misstatement

An error or inaccuracy in a statement or document, which can be either unintentional or deliberate.

Fraud

An intentional deception made for personal gain or to damage another individual.

Misrepresentation Liability

Legal responsibility arising from providing false or misleading statements that someone else relies on to their detriment.