Author Question: Reasons to adopt an enterprise risk management plan include all of the following EXCEPT A) to ... (Read 77 times)

leo leo · **on:** Jul 11, 2018

Reasons to adopt an enterprise risk management plan include all of the following EXCEPT

A) to increase earnings volatility.
B) to treat risks facing the business in a more holistic way.
C) to increase net income.
D) to gain an advantage over competitors.

Question 2

LMN Insurance Company is concerned about its exposure to hurricane losses for property risks it insured on the Gulf Coast. LMN borrowed money from investors by issuing financial securities.

LMN promised to repay the money it borrowed with interest if hurricane losses do not exceed a specified level. If hurricane losses exceed the specified level, LMN will repay less than it borrowed and use the extra money to fund hurricane losses. The securities that LMN issued are
A) call options.
B) futures contracts.
C) weather options.
D) catastrophe bonds.