A defense contractor dealing in trucks decided that the risk of being behind in technology was so large that it essentially "bet the company" on developing a vehicle appropriate for the types of military actions occurring around the world. If the contractor had been unsuccessful in procuring a new government order, it would have been out of business. The defense contractor has: a. No risk appetite. b. A low risk appetite. c. A moderate risk appetite d. A high risk appetite. A health services organization places patient safety amongst its highest priorities. The organization also understands the need to balance the level of immediate response to all patient needs with the cost of providing such service. The organization has a low risk appetite related to patient safety but a higher appetite related to response to all patient needs. The board of directors of the health services organization recently approved the following statement: We strive to treat all emergency room patients within two hours and critically ill patients within 15 minutes. However, management accepts that in rare situations (5% of the time) patients in need of non-life-threatening attention may not receive that attention for up to four hours. The statement above best describes the organization's: a. Risk assessment policy. b. Risk avoidance strategy. c. Risk tolerance relative to patient safety d. Risk mitigation strategy According to the Committee of Sponsoring Organizations (COSO) of the Treadway Commission, which of the following components of the internal control integrated framework addresses an entity's timely reporting of identified internal control deficiencies? a. Control environment. b. Monitoring. c. Information and communication. d. Control activities