Groupthink Can Be Avoided by Creating Sub-Teams to Work on the Same

question 294

True/False

Groupthink can be avoided by creating sub-teams to work on the same problem and then sharing their proposed solutions, or by inviting internal auditors to observe and react to group process and decisions.

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Definitions:

Risk Exposure

Risk exposure is the measure of potential future losses that may result from business activities or investment decisions, due to risks that have been taken.

Variable-Rate Loan

A loan in which the interest rate can change over time, based on an underlying benchmark interest rate or index.

Interest Rate Cap

A financial derivative contract that limits the maximum interest rate a borrower has to pay on a variable-rate loan.

Futures Contracts

Standardized agreements to buy or sell a commodity or financial asset at a future date and price.