Professional judgment must be used when evaluating business risk.

Question

Quizplus · Accepted Answer

Professional judgment is necessary when evaluating business risk because it involves subjective analysis and interpretation of factors that may impact a company's operations, financials, and reputation. Factors such as leadership competence, industry trends, economic conditions, and regulatory compliance can affect the level of risk faced by a business. Therefore, professional judgment is needed to assess such risks and develop appropriate risk management strategies.

Professional Judgment Must Be Used When Evaluating Business Risk