Question

In an industry that requires high risk how can a company take on risk without crossing...

In an industry that requires high risk how can a company take on risk without crossing the line and fraudulently reporting financials?

Homework Answers

Answer #1

In a industry which requires a high risk, can continue to have risk without crossing the line and fraudulently reporting financials are:

a) Carry on the business at the lower level within the resources available.

b) The risk of one project could be subsitute with the additional resources of the other project.

c) Any additional risk taken on any project could be sanctioned from the approving committee.

d) The risk undertaken on a project should be equally componsated by additional benefits of the project.

e) In case the risk on a project is undertaken by the third party ie. insurance .

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