MANAGEMENT

Detailed explanation-1: -Property risk affects either personal or real property. Thus, a house fire or car theft are examples of property risk. A property loss often involves both a direct loss and consequential losses.

Detailed explanation-2: -Theft remains one of the greatest risks associated with controlling inventory, especially high-value inventory. Companies spend millions of dollars each year to create inventory control policies and safeguards to prevent theft, but theft still occurs on a regular basis. Theft can occur in a number ways.

Detailed explanation-3: -What are the main types of control? Controls are usually categorised as either Preventive, Detective or Reactive. This is based primarily on where in a risk’s life do they apply and as a result, do they modify the likelihood and or the impact of the risk.

Detailed explanation-4: -Examples of control risks include cybersecurity risks, integrity and moral risks, risk of fraud, poor business system designs, etc. Control risk monitoring is a vital responsibility for an organization’s accounting department.