CFM Exam Dumps | What is the process of limiting a company's exposure to liability?

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Question 40/122

What is the process of limiting a company's exposure to liability?

A. Risk management.

B. Risk avoidance.

C. Liability management.

D. Limited liability analysis.

Correct Answer: A

Risk management involves identifying, assessing, and mitigating risks that could result in liability. This process includes:
* Implementing safety procedures and compliance measures.
* Training employees on risk mitigation strategies.
* Developing emergency response and contingency plans.
* Why the other options are incorrect:
* (B) Risk avoidance seeks to eliminate risk altogether but is not always feasible.
* (C) Liability management is a subset of risk management but does not encompass the entire process.
* (D) Limited liability analysis is a financial strategy, not a risk mitigation process.

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