In a conversation about risk management, Miguel and Rafaela were trying to decide whether to recommend their company invest some cash in short-term securities to increase the cash available for operations. Which element of the COSO framework is most related to their recommendation?
A)Internal environment
B)Monitoring
C)Risk assessment
D)Risk response

Question

Quizplus · Accepted Answer

Risk response involves deciding how to address and manage risks, which includes making investment decisions to manage cash flow and liquidity.

In a Conversation About Risk Management, Miguel and Rafaela Were