Question

a CFO has chosen avoidance as the organization's primary platform to reduce risk in order to achieve its long-term financial goals. which action would the CFO of the organization recently take if keeping with this philosophy?

1. choose not to buy available property that would otherwise have allowed the organization to expand
2. alter the scope of marketing that would otherwise have broadened The branding opportunities of the organization
3. outsource a percentage of the workload that would otherwise have been handled in house by the organization.
4. decrease the amount of insurance that would otherwise have reduce the risk to the organization

Answer 1

When there is an Avoidance policy which has been adopted into the organisation then all such fast which would be leading to avoidance of of risk in order to achieve its financial goals will be undertaken.

when he is outsourcing a percentage of the workload that would otherwise have been handled in the organisation itself, it would be leading to outsourcing the risk and avoiding the risk where as it would also be leading to influence of the profits to a large extent because it would be earning through commission and reducing risk in order to achieve long term financial goals.

Other options are not true because they would be leading to to loss in relation to the overall organisational Management and that would not lead to achievement of long-term objective.

Correct answer would be option ( 3).