What is the difference between mitigating a risk and a contingency plan? Provide real life examples that illustrate the difference.
Fill in the blank(s) with the appropriate word(s).
Answer will vary
The key distinction between a risk response or, for example, mitigating a risk, and a contingency plan is that a response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan is not part of the initial implementation plan and goes into effect only after the risk is recognized.
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A. Recoding B. Encoding C. Channeling D. Decoding
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What four areas are covered by the Standards of Ethical Conduct for Certified Management Accountants? How are these areas defined?