An example of a quantitative factor that risk analysis should consideris the volatility of prices of a key input.

True

False

3. Enterprice risk managment is based on placing risks into silos not evaluating the aggregate of risk.

True

False

4. Risk analysis involves a detailed consideration of uncertainties, risk sources, consequences, likehood, events, scenarios, control and their effectiveness.

True

False

5. The managment of Starbucks maintains close relationships with coffee farmers in order to assure the risk of non-delivery is remote.

True

False

6.

An example of a qualitive factor that risk analysis should consider is the complexity and connectivity of risks to which a business is exposed.

True/False

7.

A restaurant chain is hyper concerned about products in its supply chain that could be contaminated. The company's CEO has hired a team to manage supply chain risk. The purchasing unit is given the objective of minimizing costs. The supply chain managers and purchasing managers have potentially conflicting objectives.

True

False

8.

A book publisher that publishes only spy novels would be more diversified than a publisher that publishes many genres.

True

False

9.

An exporter is willing to pay higher rates to a shipper with a better on time record. Better on time record is measured by the standard deviation of shipping times. The recognized and accepted delivery time is between 20 and 21 days.

trip	days to deliver company A
1	22
2	22
3	22
4	20
5	18
6	19
7	21
8	18
9	20
10	18

trip	days to deliver B
1	24
2	15
3	26
4	11
5	12
6	13
7	12
8	29
9	11
10	21

The exporter would be willing to pay shipper B a higher rate for more certainty.

True

False

22

Effective enterprise risk management should integrate the analyses of key risks to reflect their interdependencies.

True

False