Which of the following statements are true about risk management? Select TWO.

Which of the following statements are true about risk management? Select TWO.
A . the goal of risk management is to reduce risks to 0
B. risk management is a continuous process
C. risk management is an activity that is conducted by a business once a year
D. risk management can help companies ensure the smooth and successful running of purchase and supply operations
E. risk management is the process by which all risks are either treated or transferred

View Answer

Answer: B,D

Explanation:

The correct responses are 2 and 4: risk management is a continual process and helps companies ensure the smooth and successful running of P+S. These are direct quotes from p.3 of the study guide. The other answers are wrong- if risk management is a continuous process it’s not something that is done once a year- so this option is automatically discounted. Option 1 is also wrong as you can never reduce all risks to 0, and option 5 is also wrong- risks can be treated and transferred, but they can also be tolerated and terminated.