The Second Step of the Risk Assessment Process Is Generally

question 90

Multiple Choice

The second step of the risk assessment process is generally to

• A)identify controls to reduce all risk to zero.
• B)estimate the exposure from negative events.
• C)identify the threats that the company currently faces.
• D)estimate the risk probability of negative events occurring.

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Definitions:

Federal Funds Market

A market for overnight lending and borrowing of reserves among banks; the interbank market for reserves on account at the Fed.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by regulatory bodies.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government spending.

Clear

in an economic or financial context often means to settle a transaction or complete a trade or payment process.