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AssignmentMultiple Choice

Managing Liability and Liquidity Risk

Question 1 • AHS Introduction to Careers in Finance

The risk management function of the Good Neighbor Bank will be constantly looking at _____. (Select all that apply.)

Answer
A
identifying risk
B
offsetting the negative consequences of risks
C
measuring risk
D
eliminating risk

Explanation

Risk management involves identifying risks, measuring or assessing their likelihood and impact, and taking steps to reduce or offset their negative consequences. It does not mean eliminating risk entirely, since risk cannot usually be removed completely.

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