____ allows an organization to react more quickly when risk events occur by already having previously prepared plans and proposed actions in place in advance of the actual event.
A) Hedging
B) Use of third party intermediaries
C) Multiple sourcing
D) Scenario analysis
E) None of these choices.

Question

Quizplus · Accepted Answer

Scenario analysis involves preparing plans and proposed actions in advance of potential risk events. This allows organizations to react more quickly when the actual event occurs as they have already considered various scenarios and developed plans accordingly. Hedging, use of third party intermediaries, and multiple sourcing are risk management strategies but they do not necessarily involve preparing plans in advance of risk events.

____ Allows an Organization to React More Quickly When Risk