Question

In reviewing his company's operations, a risk manager noticed that all of the company's finished goods were stored in a single warehouse. The risk manager recommended that the finished goods be divided among three warehouses to prevent all of the finished goods from being destroyed by the same peril. Dividing the finished goods among three warehouses illustrates

Answer 1

Answer: risk control

Explanation: Risk control measures are measures taken in response to a risk factor that has the potential to cause accident or harm in an organization. The control measures can either be designed to reduce the risks or eliminate them completely, with the latter obviously being preferred. It is a plan-based business strategy that aims to identify, assess, and prepare for any potential dangers or hazards, both physical and figurative that may interfere with an organization's operations and goals.