An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?
A. Risk avoidance.
B. Risk-benefit analysis.
C. Risk sharing.
D. Risk acceptance.
Answer:D
An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?
A. Risk avoidance. B. Risk-benefit analysis. C. Risk sharing. D. Risk acceptance.