ACC 544 Week 2 Individual Assignment Justification

The existing internal controls focus risk mitigation efforts on insurance and a distributer portfolio. Insurance risk mitigation recognizes that the best laid plans will sometimes fail. This failure is typically caused by unforeseen scenarios, such as accidents, natural disasters, injuries, and other such events. Any of these events can present significant financial losses for the company, and impair the company’s ability to conduct business after the loss. This risk is mitigated by insurance, in which a third party is brought in, and for a fee, assumes a portion of the risk is identified in the insurance policy (McCarthy, Flynn, & Brownstein, 2004). By its nature insurance is a reaction to a perceived risk, and unperceived risks can still leave the business exposed
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