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NEW QUESTION: 1
What is expressed in a way that indicates price changes over time?
A. Variance
B. Discrepancy
C. Inflation
D. Index
Answer: D
NEW QUESTION: 2
Consider the following statement:
"A defect which might affect the appearance or general function of essential parts" This definition describes a seriousness classification described as
A. Critical.
B. Incidental.
C. Minor.
D. Major.
Answer: D
NEW QUESTION: 3
The PRIMARY objective of a risk management program is to:
A. minimize inherent risk.
B. minimize residual risk.
C. implement effective controls.
D. eliminate business risk.
Answer: B
Explanation:
Explanation
The goal of a risk management program is to ensure that residual risk remains within manageable levels.
Management of risk does not always require the removal of inherent risk nor is this always possible. A possible benefit of good risk management is to reduce insurance premiums, but this is not its primary intention. Effective controls are naturally a clear objective of a risk management program, but with the choices given, choice C is an incomplete answer.