Which of the following statements is true regarding organizations with self-contained units (SCU) for risk-management?
A)The SCU has final authority on risk assessment and uses information from employees with similar expertise at the division-level.
B)It works independently and information flows only between the SCU and headquarters.
C)The organization chart depicts a strong relation between the division-level employees who have information on risk and the SCU.
D)Employees with knowledge of division level-risks are transferred to the SCU.

Question

Quizplus · Accepted Answer

Organizations with self-contained units (SCU) for risk-management generally have the SCU as the final authority on risk assessment. However, they may gather information from employees with similar expertise at the division-level. This allows for a balance between central control and input from local sources. Option B is incorrect as information flows both ways between the SCU and the headquarters. Option C is only stating a relationship on the organization chart, which may not reflect the actual flow of information. Option D is not a general practice in organizations with SCUs.

Which of the Following Statements Is True Regarding Organizations with Self-Contained