Each of the following is a benefit of practicing risk management by companies except
A)companies can manage risk better than their shareholders
B)risk management can avoid bankruptcy costs
C)risk management can lower taxes
D)risk management can increase employment opportunities
E)risk management can help prevent companies from passing up valuable investment opportunities

Question

Quizplus · Accepted Answer

Risk management primarily focuses on identifying, assessing, and prioritizing risks followed by coordinated application of resources to minimize, control, or eliminate the impact of unforeseen events. The direct benefits include better management of risks than individual shareholders could achieve, avoidance of bankruptcy costs, potential tax benefits, and preventing the company from missing valuable investment opportunities. Increasing employment opportunities is not a direct benefit of risk management; rather, it's a potential indirect outcome or not necessarily related to the core objectives of risk management practices.

Each of the Following Is a Benefit of Practicing Risk