Risk Is Defined as the Chance (Probability) of Actually Observing

question 64

True/False

Risk is defined as the chance (probability) of actually observing outcomes that are less than expected, or unfavorable.Outcomes that are greater than expected are not considered when evaluating risk because such occurrences are desirable.

---

Definitions:

Employee Bonus

Additional compensation given to employees beyond their regular salary, often as a reward for achieving performance targets or for exceptional service.

Reward Performance

Implementing incentives or recognition for individuals or teams based on their achievements or output, typically to motivate and encourage desired behaviors or outcomes.

Firm Loyalty

The degree of commitment and allegiance an employee exhibits towards their organization, often resulting in increased productivity and willingness to contribute to the company's success.

Merit Pay System

A compensation strategy that rewards employees based on their performance and achievements rather than their role or seniority.