Jay is trying to convince the company president that risk management is important. Which of the following statements is most true?

Question

Quizplus · Accepted Answer

Expectancy theory can be used to create a good internal environment by demonstrating that implementing risk management processes will lead to a reduction in negative outcomes and an increase in positive outcomes. By showing that taking action to manage risk will lead to positive results, the company president is more likely to view risk management as important. Choice A is incorrect because expectancy theory can still be applied regardless of the level of involvement of the company president. Choice B is incorrect because business process management is not directly related to convincing the company president of the importance of risk management.

Jay Is Trying to Convince the Company President That Risk