Which of the Following Is NOT Involved in Risk Control

question 81

Multiple Choice

Which of the following is NOT involved in risk control?

• A)Executing the risk response strategy
• B)Initiating contingency plans
• C)Establishing a change control system
• D)Establishing contingency funds
• E)Watching for new risks

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Definitions:

Controllable Margin

The portion of income that can be directly influenced by management decisions, excluding fixed costs and uncontrollable expenses.

Operating Assets

Assets used by a business in its daily operations to generate revenue, excluding investment and non-operational assets.

ROI

Return on Investment, a performance measure used to evaluate the efficiency of an investment or compare the efficiency of different investments.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.