The Initial Step in the Risk Management Process Is to

question 22

Multiple Choice

The initial step in the risk management process is to

• A)Determine the level of acceptable risk.
• B)Assess the risk potential.
• C)Identify the risks.
• D)Set aside budget funds for managing the risks.
• E)Appoint a risk manager.

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Definitions:

Unearned Fees

Income received for services that have not yet been performed, similar to unearned revenue but specifically related to service fees.

Fees Earned

Revenue recognized from providing services, as opposed to selling goods.

Adjusting Entry

An accounting record update that adjusts account balances at the conclusion of an accounting period.

Unearned Tuition

Income received by an educational institution for tuition that is yet to be earned by providing educational services.