Question

Which type of risk management is associated with the reduction of costs in hiring employees?

A. financial risk
B. operational risk
C. strategic risk
D. compliance risk

Answer 1

Operational risk is associated with the reduction of costs in hiring employees.

Step-by-step explanation:

The type of risk management associated with the reduction of costs in hiring employees is operational risk.

Operational risk refers to the risk of loss resulting from inadequate or failed internal processes, systems, or human actions. In the context of reducing costs in hiring employees, operational risk management involves implementing efficient and effective hiring processes, streamlining HR operations, and minimizing errors or inefficiencies that could lead to increased costs.

For example, implementing automated recruitment systems, conducting thorough background checks to avoid costly mistakes, or providing comprehensive training to reduce turnover and associated hiring costs are all strategies that address operational risk.