The Purpose of Risk Management (RM) Systems Is to

question 51

Multiple Choice

The purpose of Risk Management (RM) systems is to

• A)provide assistance to officers with performance issues.
• B)systematically collect data on litigation costs, analyze the causes of the lawsuits, and takes steps to reduce or eliminate the causes.
• C)assess the risk of not applying for departmental accreditation.
• D)measure the risk of losing federal funding.

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Definitions:

Operating Expense

Refers to the costs associated with the day-to-day operations of a business, excluding costs related to production.

Receivables

Amounts due to be paid to a company by its customers for goods or services delivered on credit terms.

Bad Debt Expense

The expense recognized when a business determines that an amount owed by a debtor is unlikely to be collected.

Specific Customer's Account

An account representing the transactions and outstanding balance related to a particular customer.