For a Company the Process of Risk Management Needs To

question 8

Multiple Choice

For a company the process of risk management needs to:

• A) cover financial and operational risks only.
• B) cover business and operational risks only.
• C) be a structured process.
• D) be flexible as the nature of risk is dynamic.

Understand the relationship between a function and its reciprocal.

Understand the components and purposes of different types of business plans (operational, strategic, budgeting, and forecasting).

Distinguish between the roles of budgeting and forecasting in business planning.

Recognize the audiences for business plans and their expectations.

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, through which they seek relief from some or all of their debts.

Federal Law

Legislation enacted by the national government and applicable throughout the country.

Unenforceable

Describes a contract or clause that cannot be executed by legal action because of certain legal defenses or barriers.

Insider

An individual who possesses access to valuable non-public information in a corporation, often due to their position or relationship to the entity.