A risk manager should address which of the following considerations?
I.The firm needs to understand the major risks and consequences that the company faces.
II.The firm needs to determine if it is being paid for any particular risk.
III.The firm should simply view risks as external factors beyond the firm's control.
IV.The firm should know how to control a particular risk.
A)I only
B)I and II only
C)I, II, and IV only
D)III only

Question

Quizplus · Accepted Answer

I, II, and IV are correct because a comprehensive risk management approach involves understanding major risks, assessing if the firm is compensated for taking on certain risks, and knowing how to control or mitigate these risks. III is incorrect because viewing risks solely as external factors beyond control overlooks the importance of internal risk management strategies.

A Risk Manager Should Address Which of the Following Considerations