Question

How is a risk control best understood by an organization?

Ensuring that employees are following risk management guidelines
Restricting the amount of risk the organization assumes in its dealings
Indicating what triggers a specific risk management response
Sharing a risk's occurrence or impact and its likelihood

Answer 1

A risk control is best understood by an organization through ensuring employees follow guidelines, restricting the amount of risk assumed, and sharing risk information.

Step-by-step explanation:

A risk control is best understood by an organization through several key actions:

1. Ensuring that employees are following risk management guidelines helps establish a framework for identifying and addressing risks in a consistent and reliable manner.
2. Restricting the amount of risk the organization assumes in its dealings involves implementing measures to minimize the potential negative consequences of risky decisions.
3. Sharing a risk's occurrence or impact and its likelihood allows the organization to proactively assess and respond to potential risks, making informed decisions to mitigate or address them appropriately.