​Risk Response Benefit Can Be Defined As

question 39

Multiple Choice

​Risk response benefit can be defined as:

• A) ​the difference between an inherent risk and a residual risk produced by a particular risk response.
• B) ​the benefit of the risk response minus the cost of risk response.
• C) ​the sum of an inherent risk and a residual risk produced by a particular risk response.
• D) the difference between the incremental cost incurred by a company to implement a particular risk response and the residual risk.

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Definitions:

Sustainable

The quality of not being harmful to the environment or depleting natural resources, thereby supporting long-term ecological balance.

Substitution Effect

The change in consumption patterns due to a change in relative prices, where consumers substitute away from more expensive goods towards cheaper ones.

Income Effect

The alteration in the income of an individual or an economy and its impact on the demand for a specific good or service.

Private Saving

Private saving is the portion of household income that is not consumed or paid in taxes, but instead is saved or invested.