GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Reviewing the Risk Analysis
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should occur every so often to ensure avoidance of future problems associated with risks and risk management; involves testing current systems and methods to minimize the likelihood of other issues arising
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a company may also take the opposite approach and invest in new resources if they feel their current ones are not substantial enough to handle the risks
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a company may decide to use what they currently have and try to modify and improve their existing methods and systems to handle the risks in a more efficient manner
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once the impacts of the risks have been predicted, a company can attempt to minimize the harmful effects that risks bring and prepare to handle them in the best way possible
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consists of minimizing the effects of risks, improving existing business systems and investing in new resources
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Explanation:
Detailed explanation-1: -Materiality, audit objectives, and management’s direction are the key items to consider.
Detailed explanation-2: -Risk management focuses on identifying what could go wrong, evaluating which risks should be dealt with and implementing strategies to deal with those risks. Businesses that have identified the risks will be better prepared and have a more cost-effective way of dealing with them.
Detailed explanation-3: -Step 4: Treat the Risk Every risk needs to be eliminated or contained as much as possible. This is done by connecting with the experts of the field to which the risk belongs.
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