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K is a large mining company.

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K is a large mining company. In its risk report it states that there is a risk of accidents and injury because of the nature of the industry. It states that it has staff training in place and complies with all Health and Safety regulations but in spite of this there will still be a residual risk that accidents and injuries may occur.

Which of the following statements are correct?

A.

The shareholders should not invest because there is still a residual risk.

B.

The directors are avoiding their responsibilities by saying there is a residual risk.

C.

Some risks cannot be eliminated.

D.

Accepting a residual risk does not imply the company is reckless.

E.

Most companies in this industry will say something similar in their risk report.

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