Risk Management Fundamentals Quiz
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Questions and Answers

What is the primary purpose of risk management for an organization?

  • Maximizing profits and minimizing expenses
  • Identifying, assessing, and controlling threats to the organization’s capital and earnings (correct)
  • Focusing solely on legal liability
  • Ensuring 100% elimination of all risks

    • How does risk management contribute to corporate governance principles?

  • By focusing specifically on risk management to help the company reach its goals (correct)
  • By only considering the organization's insurance needs
  • By eliminating all risks to ensure a safe work environment
  • By ignoring potential threats to focus on profits

    • What does risk management enable organizations to do in their business decisions?

  • Avoid establishing procedures to minimize impact of potential threats
  • Ignore potential threats for short-term gains
  • Take unnecessary risks for higher profits
  • Be more confident in their business decisions (correct)

    • How does risk management contribute to creating a safe and secure work environment?

    <p>By establishing procedures to avoid potential threats and minimize their impact</p> Signup and view all the answers

    What is one of the benefits of risk management for an organization's insurance needs?

    <p>Helps establish the organization's insurance needs to save on unnecessary premiums</p> Signup and view all the answers

    What is a key benefit of risk management for an organization's operations?

    <p>Increases the stability of business operations and decreases legal liability</p> Signup and view all the answers

    How does risk management contribute to an organization's financial well-being?

    <p>Helps establish the organization's insurance needs to save on unnecessary premiums</p> Signup and view all the answers

    What does risk management enable organizations to do in their decision-making process?

    <p>Establish procedures to avoid potential threats and minimize their impact</p> Signup and view all the answers

    How does risk management contribute to creating a safe work environment?

    <p>Protects all involved people and assets from potential harm</p> Signup and view all the answers

    What is a key role of strong corporate governance principles that focus on risk management?

    <p>Help a company reach its goals</p> Signup and view all the answers

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