- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 6. Introduction to Risk Management
- Subject 1. The Risk Management Process
CFA Practice Question
Which statement about risk management is true?
B. Risk management is about minimizing risk.
C. Good risk management prevents losses.
A. Risk management is not only about avoiding risk.
B. Risk management is about minimizing risk.
C. Good risk management prevents losses.
Correct Answer: A
Risk is an integral part of business. Management chooses which risks to take, manages them, and keeps them aligned with the goals of the organization.
Risk management is about taking risks actively and in the best, most value-added way possible.
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