Whose responsibility is it to design, implement, and consistently review a risk-management system?
Answers
Answer 1
Answer:
The responsibility for designing, implementing, and consistently reviewing a risk management system typically falls on the organization or business itself, especially if it's a larger entity. In a business or organizational context, this responsibility often involves various stakeholders, including:
1. **Senior Management:** Senior executives and leaders within the organization play a crucial role in establishing the overall risk management framework, setting policies, and allocating resources for risk management efforts.
2. **Risk Management Team:** Many organizations have dedicated risk management teams or officers who specialize in identifying, assessing, and mitigating risks. These professionals often report to senior management.
3. **Employees:** Employees at all levels have a role in risk management. They must be aware of and adhere to risk management policies and procedures, report potential risks or issues, and participate in risk mitigation efforts.
4. **External Consultants:** In some cases, organizations may hire external consultants or experts to assess and improve their risk management practices.
5. **Regulatory Authorities:** Depending on the industry and location, regulatory authorities may require specific risk management practices and reporting. Compliance with these regulations is also a responsibility.
6. **Stakeholders:** Businesses have a responsibility to communicate their risk management practices to stakeholders, including investors, customers, and partners.
The specific responsibilities and structure of a risk management system can vary widely depending on the organization's size, industry, and risk profile. However, the key is to have a systematic approach to identify, assess, and mitigate risks that could impact the organization's operations, finances, reputation, and compliance with legal and regulatory requirements. This process should be ongoing and adapt to changing circumstances and new risks that may emerge.
Thomas Trotte is 50 years old. He wants to purchase a $50,000, 5-year term life insurance policy. The premium per $1,000 is $5.80. What is his annual premium?