which of the following statements about risk management is true? a)risk management is concerned with reducing exposure to legal liability b) risk management is a spontaneous response to an unexpected incident C) risk management is unique to the heatlh care industry d) risk management is controlled and managed by HIPAA regulations
http://www.investopedia.com/terms/r/riskmanagement.asp
http://www.businessdictionary.com/definition/risk-management.html
Let us know what you decide.
To determine which statement about risk management is true, we need to analyze each option and the concepts surrounding risk management. Here's a breakdown of each statement:
a) Risk management is concerned with reducing exposure to legal liability: This statement is generally true. Risk management involves identifying potential risks and implementing strategies to mitigate them, which often includes minimizing legal liability.
b) Risk management is a spontaneous response to an unexpected incident: This statement is not entirely accurate. Risk management is a proactive and systematic approach that involves identifying, assessing, and mitigating risks before they occur. It is not solely a response to unexpected incidents but aims to prevent them.
c) Risk management is unique to the healthcare industry: This statement is false. Risk management is not specific to any particular industry or sector. It is a practice implemented across various industries to identify and mitigate risks.
d) Risk management is controlled and managed by HIPAA regulations: This statement is false. HIPAA (Health Insurance Portability and Accountability Act) primarily focuses on privacy and security of health information, not the wider scope of risk management. While healthcare organizations need to incorporate risk management into their practices to comply with HIPAA regulations, risk management is not solely controlled or managed by HIPAA.
Therefore, the statement that is true is:
a) Risk management is concerned with reducing exposure to legal liability.
The correct statement about risk management is:
a) Risk management is concerned with reducing exposure to legal liability.
Risk management aims to minimize the potential for legal and financial harm by identifying, assessing, and mitigating various risks. It is a proactive and strategic approach to prevent or reduce the negative impacts of uncertain events and potential liabilities.