CHAPTER SUMMARY

People manage risk every day of their lives. They choose when to go bed, when to wake up, what foods to eat, what route to drive their cars, and much more. Each decision has risk and rewards attached. This is no different in the business world. People face many decisions daily. They often operate with incomplete information. They are faced with critical deadlines that could be more easily met by sharing information outside policy guidelines. As you gain experience, these decisions become more instinctive.

For business, it is daily processes and decisions that control risk. Policies provide guidance on how to think about risk. Policies and their related controls detail how to prevent, detect, and correct errors. This landscape ...

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