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Questions and Answers
What is the primary goal of enterprise risk management (ERM)?
Which of the following is considered a type of human risk?
What is an example of location risk?
In the context of strategic risks, which statement is correct?
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Which kind of risk involves hazardous materials such as toxic fumes or acid?
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Which type of risk management is specifically highlighted for financial technology businesses?
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What could be considered a strategic risk?
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Which of the following accurately describes risk management in business?
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What is the primary focus of confidentiality in risk management?
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What happens when integrity in information management fails?
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How does unavailability of critical applications impact a business?
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Which of the following is NOT a component of risk management in financial technology businesses?
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What is the consequence of unauthorized access in the context of confidentiality?
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Which of the following is NOT a strategy for managing risks in a business?
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What is a primary benefit of having a risk management strategy in place?
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Which type of insurance is generally not included in risk management practices?
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Effective risk prevention measures can include which of the following?
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What is one of the key questions in the purpose of risk management?
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Which of the following is NOT a method of insuring against risk?
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A well-prepared business uses risk management strategies primarily to:
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What is an essential aspect of identifying risks in a business?
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Study Notes
Course Overview
- Introduction to Risk Management in Financial Technology.
- Emphasis on understanding the relevance of risk management in various sectors: life, business, and technology.
Key Definitions
- Enterprise Risk Management (ERM): Integrated approach to managing risks across an organization to achieve objectives.
Types of Risks in Business
- Physical Risks: Include threats such as building risks (fires, explosions) and hazardous material risks (toxic substances).
- Human Risks: Encompass embezzlement, theft, fraud, and risks related to employee health or substance abuse.
- Location Risks: Environmental hazards like wildfires, floods, storms, earthquakes, and other natural disasters.
- Strategic Risks: Not inherently negative; can lead to profitable outcomes, e.g., financial and pharmaceutical risk-taking.
Risk Management Process
- Key steps include identifying, preventing, and insuring against risks.
- Successful identification relies on analyzing business activities and historical data.
Risk Identification Strategies
- Prepare strategies based on specific business activities and past incidents.
- Manage risks through acceptance, transfer, reduction, or elimination.
Risk Prevention Techniques
- Effective employee training, process improvements, and safety checks reduce potential risks.
- Implementation of background checks and regular equipment maintenance as preventive measures.
Insurance in Risk Management
- Essential insurance types include professional liability, property, workers’ compensation, product liability, and business interruption insurance.
Purpose of Risk Management
- Provides a framework for identifying, assessing, and mitigating risks.
- Enhances decision-making with comprehensive risk information.
Key Questions in Risk Management
- Evaluate the risks associated with business strategy.
- Determine acceptable levels of risk and strategies for data management and risk assessment.
Practice of Risk Management
- Key stages include identifying, measuring, assessing, analyzing, monitoring, and planning action on risks.
Risk Management in Financial Technology
- Three primary considerations: confidentiality, integrity, and availability of information.
- Confidentiality: Protection of sensitive information from unauthorized access.
- Integrity: Ensuring information is accurate and not improperly modified.
- Availability: Ensures essential applications are accessible, impacting operational efficiency and profitability.
Recap of Class Content
- Overview of course expectations and risk management significance in various domains.
- Introduction to risk management practices, specifically within financial technology.
Suggested Readings for Next Week
- Engage with recommended materials to deepen understanding of risk management principles.
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Description
This quiz covers the introductory concepts of Risk Management as it applies specifically to Financial Technology businesses. It includes an overview of the course expectations, evaluations, and an introduction to the purpose and general practices of risk management in the financial sector.
