Risk Management Shifts an Enterprise from a Pro Active Approach

question 41

True/False

Risk management shifts an enterprise from a pro active approach of anticipating and mitigating future risks before incidents occur to a reactive approach.

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Definitions:

Stock Investment

The purchase of shares in a company with the expectation of earning a return on investment through dividends, share price appreciation, or both.

Dividend

A portion of a company's earnings distributed to shareholders as a reward for their investment.

Fair Value

An estimate of the market price for assets or liabilities, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.

Parent and Subsidiary

A parent and subsidiary relationship exists when one company, the parent, owns more than half of another company, the subsidiary, granting control and often integrating operations or management.