How Can the Purpose of Risk Management Best Be Described

question 8

Multiple Choice

How can the purpose of risk management best be described?

• A)A method to improve the performance of the organizations stock portfolio
• B)To take cost effective measures to reduce potential risk to the organization to an acceptable level
• C)A method to inform management of the types of assets the company controls
• D)A means of getting cheaper insurance for the organization

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Definitions:

Inventory Control

The management practice of overseeing and regulating the ordering, storing, and use of components that a company uses in the production of the items it sells.

Approved Vendor

A supplier who has been vetted and meets a company's criteria for quality, reliability, and business ethics, and is thus authorized to supply goods or services.

Weighted Average

A calculation that takes into account the varying weights or importance of different elements in a data set, often used in accounting and inventory management.

Inventory Units

The quantity of individual items or products that a company holds in stock at any given time.