Business Risk and Compliance Terms Quiz

The risk that the company might fail to comply with applicable laws, regulations, and contractual obligations to other entities.

The possibility that the business may not be able to generate sufficient revenue, or an increase in production and operating costs might occur.

The risk that a counter-party such as a customer or a borrower will fail to pay his/her account on the due date.

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

<p>Fraud risk is the risk arising from intentional and deceptive acts that result in the loss of company assets, resources, and reputation.</p> Signup and view all the answers

<p>Health and safety risk is the risk that unforeseen events could result in injuries, illnesses, or even loss of lives.</p> Signup and view all the answers

<p>Impact refers to the significance or magnitude of the risk on its effect to the company.</p> Signup and view all the answers

<p>International Financial Reporting Standards are a set of internationally accepted accounting standards intended to promote quality and transparent financial reporting.</p> Signup and view all the answers

<p>Likelihood is the probability that the event will occur.</p> Signup and view all the answers