10 Questions
Define compliance risk.
The risk that the company might fail to comply with applicable laws, regulations, and contractual obligations to other entities.
What is the definition of business risk?
The possibility that the business may not be able to generate sufficient revenue, or an increase in production and operating costs might occur.
Explain credit risk.
The risk that a counter-party such as a customer or a borrower will fail to pay his/her account on the due date.
What is enterprise risk management?
A process applied in strategy setting and across the enterprise to identify potential events that may affect the entity, manage risk, and provide reasonable assurance regarding the achievement of entity objectives.
Define financial risk.
The likelihood that the company might incur a financial loss, or suffer a decline in profit, capital, investment, or cash flows on account of the occurrence of events or transactions.
What is fraud risk?
Fraud risk is the risk arising from intentional and deceptive acts that result in the loss of company assets, resources, and reputation.
Define Health and safety risk.
Health and safety risk is the risk that unforeseen events could result in injuries, illnesses, or even loss of lives.
What does Impact refer to in the context of risk?
Impact refers to the significance or magnitude of the risk on its effect to the company.
What are International Financial Reporting Standards (IFRS)?
International Financial Reporting Standards are a set of internationally accepted accounting standards intended to promote quality and transparent financial reporting.
Explain Likelihood in relation to risk.
Likelihood is the probability that the event will occur.
Test your knowledge on key terms in business risk, compliance, and credit risk. Learn about concepts such as enterprise risk management and identify types of risks that organizations may face.
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