According to ISO 31000, what is the definition of Risk Management? The process of financial auditing and reporting to stakeholders. The development of new products to meet market demands. The identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events and to maximize the realization of opportunities. The strategic planning of business operations to maximize profit.

The identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events and to maximize the realization of opportunities.

What is the International Organization of Standardization (ISO)? A governmental body regulating international trade agreements. A global financial institution providing loans to developing countries. An independent, non-governmental, international standard development organization composed of representatives from the national standards organizations of member countries. A multinational corporation specializing in technology solutions.

An independent, non-governmental, international standard development organization composed of representatives from the national standards organizations of member countries.

What are the initial steps in the process of risk management? Financial auditing, Budget planning, Resource allocation Establishing the context, Identification of potential risks, Risk Assessment Market analysis, Product development, Sales strategy Team building, Leadership training, Performance evaluation

Establishing the context, Identification of potential risks, Risk Assessment

What does the identification of potential risks involve? Implementing new technology solutions. Conducting employee performance reviews. Analysis of the source problem or the problem itself. Developing marketing strategies.

Analysis of the source problem or the problem itself.

In risk assessment, what two factors must be evaluated? Potential severity of impact and probability of occurrence. Market trends and consumer behavior. Employee satisfaction and productivity. Technological advancements and innovation.

Potential severity of impact and probability of occurrence.

Which of the following are common risk identification methods? Objective-Based Risk, Scenario-Based Risk, Taxonomy-Based Risk, Common-Risk Checking, Risk Charting Market Analysis, Financial Forecasting, Product Testing, Customer Surveys Budget Planning, Resource Allocation, Cost Reduction, Revenue Generation Employee Training, Leadership Development, Team Building, Conflict Resolution

Objective-Based Risk, Scenario-Based Risk, Taxonomy-Based Risk, Common-Risk Checking, Risk Charting

What are some risks associated with investments? Market Expansion, Product Development, Customer Satisfaction, Employee Engagement Brand Recognition, Competitive Advantage, Supply Chain Management, Cost Efficiency Technological Innovation, Environmental Impact, Regulatory Compliance, Social Responsibility Business Risk, Default Risk, Financial Risk, Interest Rate Risk, Liquidity Risk, Management Risk, Purchasing Power Risk

Business Risk, Default Risk, Financial Risk, Interest Rate Risk, Liquidity Risk, Management Risk, Purchasing Power Risk

What does business risk refer to in the context of investments? The potential for technological obsolescence. The uncertainty about the rate of return caused by the nature of the business. The likelihood of a competitor entering the market. The impact of regulatory changes on operations.

The uncertainty about the rate of return caused by the nature of the business.

What is default risk in investment terms? The chance of a product recall due to defects. The risk of losing market share to competitors. The probability that some or all of the initial investment will not be returned. The potential for increased production costs.

The probability that some or all of the initial investment will not be returned.

Risk Management Principles: Assessment Methodologies, Investment Risks, and Mitigation

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Sociology - Management

charlotte1oxhi Created by 10 mon ago

Cards in this deck(67)

What is the process of measuring or assessing risk and developing strategies to manage it, including identifying, analyzing, and controlling areas or events with a potential for causing unwanted change?

According to ISO 31000, what is the definition of Risk Management?

What is the International Organization of Standardization (ISO)?

What are the initial steps in the process of risk management?

What does the identification of potential risks involve?

In risk assessment, what two factors must be evaluated?

Which of the following are common risk identification methods?

What are some risks associated with investments?

What does business risk refer to in the context of investments?

What is default risk in investment terms?

How does financial risk affect a firm's stakeholders?

Why does interest rate risk cause the value of an investment to fluctuate?

What is liquidity risk in the context of investments?

How does management risk affect investors?

Why is purchasing power risk more difficult to recognize than other types of risk?

What are the risks associated with manufacturing, trading, and service concerns?

What does market risk encompass in a business context?

What are some examples of operations risk?

What factors contribute to financial risk?

What elements are included in business risk?

What are the two main categories of risks associated with financial institutions?

What does financial risk in financial institutions include?

What are some examples of non-financial risk in financial institutions?

What are the potential risk treatments available?

What does risk avoidance entail?

What is involved in risk reduction or optimization?

What does optimizing risks mean?

What does risk sharing involve?

What does risk retention entail?

What are some areas of risk management?

What are the steps in the risk management process?

What is internal control in the context of governance and management?

What are the three categories of objectives in internal control?

What does an internal control system encompass?

Is it true that internal control structures vary significantly from one company to the next?

What are the elements of internal control?

What does the control environment refer to in internal control?

Is it true that the environment in which internal control operates impacts the effectiveness of specific control procedures?

What does competence mean in the context of internal control?

What does management's philosophy and operating style refer to?

What role does organizational structure play in internal control?

How can a change in the operating environment affect internal control?

What impact can new personnel have on internal control?

How can new or revamped information systems affect internal control?

What effect can rapid growth have on internal control?

How can new technology impact internal control?

What risks are associated with new business models, products, or activities?

How can corporate restructurings affect internal control?

What are the risks associated with expanded foreign operations?

How can new accounting pronouncements affect internal control?

What components make up an information system in the context of internal control?

What role does communication play in internal control?

Is it true that communication in internal control takes various forms?

What are control activities in the context of internal control?

What are the major categories of control procedures?

What are some examples of information processing controls?

What is involved in a performance review in the context of internal control?

What are information processing controls designed to do?

What are general controls in the context of internal control?

What are application controls in the context of internal control?

What is the role of monitoring in internal control?

What is fraud in the context of financial statements?

What are the types of misstatements in financial reporting?

What is asset misappropriation?

Why are asset misappropriations significant in small businesses?

What is fraudulent financial reporting?

What are the three elements of the fraud triangle?

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Risk Management Principles: Assessment Methodologies, Investment Risks, and Mitigation

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