Podcast
Questions and Answers
Which type of risk is related to potential failures within an organization's internal operations?
Which type of risk is related to potential failures within an organization's internal operations?
What is an example of compliance risk?
What is an example of compliance risk?
Which of the following risks can arise from external factors?
Which of the following risks can arise from external factors?
Strategic risk can be defined as the risk associated with which of the following?
Strategic risk can be defined as the risk associated with which of the following?
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Which risk category is most affected by factors like credit and market fluctuations?
Which risk category is most affected by factors like credit and market fluctuations?
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What type of risk involves threats related to cybersecurity?
What type of risk involves threats related to cybersecurity?
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Which of the following is NOT considered a source of internal risk?
Which of the following is NOT considered a source of internal risk?
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What type of risk is primarily concerned with losing customer trust and market share?
What type of risk is primarily concerned with losing customer trust and market share?
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Study Notes
Sources of Risk
-
Internal Risks:
- Operational Risk
- Strategic Risk
- Financial Risk
- Reputational Risk
- Compliance Risk
-
External Risks:
- Market Risk
- Political Risk
- Environmental Risk
- Reputational Risk
- Compliance Risk
Common Risk Categories
- Financial Risks
- Operational Risks
- Compliance Risks
- Strategic Risks
- Environmental Risks
- Technological Risks
Financial Risk: Possibility of losing money due to investment or business venture
- Market Risk
- Credit Risk
- Liquidity Risk
Operational Risk: Uncertainties and hazards a company faces in daily operational activities
- Internal Fraud
- External Fraud
- Process Failure
Compliance Risk
- Regulatory Compliance
- Legal Risk
Strategic Risk
- Competitive Risk
- Reputational Risk
- Business Model Risk
Environmental Risk
- Natural Disasters
- Climate Change Risks
Technological Risks
- Cybersecurity Risks
- Technological Failure
Types of Risk in Finance
-
Systematic Risk: Uncontrollable by an organization, macro in nature
- Interest Rate Risk
- Market Risk
- Purchasing Power/Inflationary Risk
- Business Risk/Liquidity Risk
- Financial Risk/Credit Risk
- Operational Risk
-
Unsystematic Risk: Controllable by an organization, micro in nature
- Price Risk
- Reinvestment Rate Risk
- Relative Risk
- Cost Inflation Risk
- Directional Risk
- Non-Directional Risk
- Basis Risk
- Volatility Risk
- Demand Risk
- Asset Liquidity
- Exposure Rate
- Model Risk
- Funding Risk
- Liquidity Risk
- Recovery Rate Risk
- People Risk
- Credit Event Risk
- Legal Risk
- Sovereign Risk
- Settlement Risk
- Political Risk
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Description
Explore the various types of risks that organizations face, including operational, financial, strategic, compliance, and reputational risks. This quiz will test your understanding of how these risks impact businesses and how they can be managed effectively.
