Cal was just hired as XYZ Company's first risk manager.Cal would like to employ the risk management process.The first step in the process Cal should follow is to
A)evaluate potential losses faced by XYZ Company.
B)formulate a treatment plan for XYZ Company's loss exposures.
C)identify potential losses faced by XYZ Company.
D)implement and administer a risk management plan for XYZ Company.

Question

Quizplus · Accepted Answer

The first step in the risk management process is to identify potential losses faced by the company. Only after potential losses have been identified can a treatment plan be formulated, a risk management plan be implemented and administered, and losses evaluated. Therefore, option C is the best choice as the first step for Cal to follow.

Cal Was Just Hired as XYZ Company's First Risk Manager