A Robust Risk Management System Will Not

question 43

Multiple Choice

A robust risk management system will not

• A)understand the risks that face it
• B)decide whether risks are acceptable to bear
• C)make sure that risk managers have covered their backs so that nobody can accuse them of errors
• D)consider the likelihood of risks materialising

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Definitions:

Common Good

A societal benefit that is shared and beneficial for all (or most) members of a community, such as clean air, public parks, and national defense.

Government Provision

The supply of goods or services provided by the government to its citizens, often funded by taxation.

Economic Goods

Products or services that have a positive economic value and thus are subject to scarcity, requiring consumers to make choices about their allocation.

Taxes

Compulsory contributions to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.