18 Questions
What is the primary concern of the government regarding business operations?
Operational risk mitigation
What is the role of regulators such as NAFDAC and SON?
To regulate business operations and ensure conformity with best practices
Why is it essential for the government to be interested in the risk exposures of multinational corporations?
To prevent negative economic impacts
What can happen to businesses that fail to satisfy regulatory requirements?
They are imposed fines, restricted or closed down
What is the purpose of the government's posture towards business risks and strategic measures?
To forestall grave economic impacts
What do regulators have a continuing interest in?
Business operations and dealings within the economy
What is the primary reason why management teams should not neglect operational risks?
To avoid monumental loss of operational assets and stoppage of operations
Why are employees invested in the operations of a business organization?
Because their salaries and allowances come from the organization
What can be a consequence of operational loss arising out of risk?
Jeopardizing of company operations and payment of employee salaries and allowances
Why should a management team institute measures to checkmate operational risks?
To mitigate known business risks
What is a potential consequence of a fire outbreak in a factory?
Monumental loss of operational assets and stoppage of operations
What is an example of an operational risk that a business organization may face?
Fire outbreak in a factory
Why are distributors interested in the risk exposures of their suppliers?
To avoid disruptions in their business operations
What hinders business customers from switching to other suppliers?
Protocols involved in switching suppliers
Why are industrial customers interested in their suppliers' risk exposures?
To ensure business continuity
What can occur if a supplier's operations are disrupted due to risks?
Difficulty in fulfilling contractual obligations
What is essential for distributors to avoid disruptions in their business operations?
Risk mitigation measures in place by their suppliers
Why is it important for suppliers to have risk mitigation measures in place?
To ensure business continuity
Test your understanding of operational risks and how to mitigate them in business organizations. Learn about the importance of risk management and its impact on business operations. Prepare yourself to institute appropriate measures to checkmate and mitigate known business risks.
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