Which of the Following Is the Optimal Corporate Risk Management

question 95

Multiple Choice

Which of the following is the optimal corporate risk management strategy?

• A)Avoid or transfer every possible risk.
• B)Do nothing to transfer risk.
• C)Transfer about half the risk.
• D)There is no single strategy that is optimal for all firms.

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Definitions:

Decision-making Power

Decision-making power is the authority to make decisions within an organization, often held by managers, leaders, or governing bodies.

Quick Resolutions

The rapid settlement or conclusion of a dispute, issue, or problem, aiming for efficiency and minimal disruption.

Collective Agreement

A written contract negotiated through collective bargaining by and for employees with their employer, detailing wages, hours, and working conditions.

Final Approval

The last step in a process where an authority or body confirms or agrees to a proposal, plan, or transaction, making it official or legally binding.