FIN 703

3. theory Two words that relate to the design of accounting systems and presupposes that systems can be effectively designed to suit the circumstances of the firm.
5. This needs to be maximised before accepting certain level of risk.
8. Directors that are important for directing a company, but who do not have managerial responsibilities.
10. A risk that may have an upside or a downside.
11. Making employees responsible for achieving and setting targets and freedom to make decisions.
13. The risk management strategy you follow if you insure agains the risk.

1. Interacting components that operate together to accomplish a purpose.
2. The theory of risk management that focuses on risk diversification.
3. Two words that describes the system by which organisations are directed and controlled.
4. The use of external suppliers for goods or services instead of doing it in-house.
6. Someone who attempts risk reduction through formal risk management procedures.
7. Whistleblowing is a means to __________ fraud.
9. Relates to the amount of risk an investor is willing to accept.
12. The type of culture (according to Handy) that can be found in smaller organisations where power and influence stem from a single source.