Please answer the following true or false

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

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

True or false

1.The main purpose of risk evaluation should be to protect the board of directors from law suits so they do not take this risk into account when making business decisions.

True or false

1. Effective enterprise risk management increases the chances that a firm will be able to identify, mitigate, avoid and treat risks that could destroy a business or make the business less competitive.

True or false

1.Frequency refers to the intensity or magnitude of a loss.

True or false

1.Business risk is the possibility that an enterprise will not be able to compete successfully and deliver its output in a way that creates value for owners.

True or false

1.A key component of an effective enterprise risk management system is to establish open lines of communication between managers responsible for monitoring and managing specific risks within a company so that the interaction of these risks can be evaluated.

True or false

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

True or false

1.Qualitative risk analysis should not be undertaken by serious risk managers since without precise predictions of loss managers will likely miss important investment opportunities that lead to slow growth of the business.

True or false

1.An effective enterprise risk management system makes it unnecessary for managers and employees to communicate about risk since the chief risk officer observes integrated risks and manages the overall risk profile of the firm.

True or false