The concept of recognizes that managers must use their judgment to ensure that the cost of control does not exceed the system's benefits or the risks involved.
A) competitive intelligence
B) reasonable assurance
C) separation of duties
D) risk assessment

Question

Quizplus · Accepted Answer

Reasonable assurance is a principle in risk management that recognizes that it is not possible to completely eliminate all risk. Rather, managers must use their judgment to ensure that the cost of control does not exceed the system's benefits or the risks involved. This approach involves assessing the likelihood and potential impact of risks, and implementing controls that provide reasonable assurance that these risks are managed effectively. It is a balancing act, recognizing that too much control can be costly and inefficient, while too little can lead to unacceptable levels of risk.

The Concept of Recognizes That Managers Must Use Their Judgment