Risk Management in Accounting: ABC Insurance Company is evaluating its financial risks. Discuss the identification and assessment of financial risks in the insurance industry. Propose risk mitigation strategies and explain the role of internal control systems in managing risks. How can risk management contribute to the stability of an insurance company?

Objective Type Question: What is the primary purpose of risk mitigation strategies in accounting? a) To eliminate all risks b) To transfer risks to external parties c) To reduce the impact or likelihood of risks d) To ignore potential risks