What is the primary objective of risk management?
Risk management aims to identify, assess, and control threats to an organization’s capital and earnings.
What is risk tolerance?
Risk tolerance refers to the degree of risk an organization is willing to take in pursuit of its objectives.
Which of the following is a key component of a risk management plan?
A risk management plan outlines the procedures and strategies to handle risks.
How does risk mitigation help an organization?
Risk mitigation strategies are designed to minimize the potential impact of risks that could affect the organization's operations.
What is the role of insurance in risk management?
Insurance is a tool used in risk management to protect an organization from financial losses resulting from unforeseen events.
What is a risk assessment matrix?
A risk assessment matrix is used to evaluate the severity and likelihood of risks and determine appropriate responses.
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What does compliance mean in risk management?
Compliance in risk management refers to adhering to laws, regulations, and standards to reduce legal and operational risks.
What is risk monitoring?
Risk monitoring is the continuous process of identifying and evaluating new risks and ensuring that risk mitigation strategies are effective.
Why is employee training important in risk management?
Training employees on risk management practices helps them identify potential risks and follow procedures to reduce or avoid these risks.