A risk management system should mean that a company will
A)avoid all risks.
B)reject any attempt to categorise risk.
C)considered the likelihood of risks materializing.
D)establish risk-avoiding controls irrespective of their costs.

Question

Quizplus · Accepted Answer

A risk management system should involve the identification, assessment, and prioritization of risks, as well as the determination of strategies to mitigate them. This means that a company will not avoid all risks but will consider the likelihood of risks materializing and take appropriate measures to manage them. Rejecting attempts to categorize risks or establishing risk-avoiding controls irrespective of their costs are not practical or effective approaches for risk management.

A Risk Management System Should Mean That a Company Will