Risk Management
12 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is risk management defined as by ISO 31000?

  • The process of reducing risks that organizations and workers face on a regular basis.
  • The process of identifying, evaluating, and prioritizing risks. (correct)
  • The process of planning for disasters and having a way to lessen negative impacts.
  • The process of identifying, assessing, and controlling threats to an organization’s capital and earnings.

    • What is credit risk?

  • The risk of natural disasters affecting an organization.
  • The risk that a bank borrower or counterparty will fail to meet its obligations. (correct)
  • The risk of strategic management errors.
  • The risk of accidents affecting an organization.

    • What is risk reduction?

  • The process of controlling threats to an organization’s capital and earnings.
  • Different processes, controls, and measures in place to reduce risks. (correct)
  • The process of planning for disasters and having a way to lessen negative impacts.
  • The process of identifying and assessing risks.

    • What does risk mitigation involve?

    <p>Planning for disasters and having a way to lessen negative impacts.</p> Signup and view all the answers

    What is risk?

    <p>The possibility of something bad happening.</p> Signup and view all the answers

    What is the focus of risk management?

    <p>Negative, undesirable consequences.</p> Signup and view all the answers

    What is the primary goal of risk management in an organization?

    <p>To minimize losses</p> Signup and view all the answers

    What is a common characteristic of risk?

    <p>It involves uncertainty about the effects of an activity</p> Signup and view all the answers

    What is the primary difference between risk reduction and risk mitigation?

    <p>Risk reduction is a process to eliminate risks, while risk mitigation is a process to lessen the negative impacts of risks</p> Signup and view all the answers

    What is the primary focus of credit risk?

    <p>Borrower's ability to meet obligations</p> Signup and view all the answers

    What is a key component of the risk management process?

    <p>All of the above</p> Signup and view all the answers

    What is the primary goal of risk mitigation strategies?

    <p>To lessen the negative impacts of risks</p> Signup and view all the answers

    Study Notes

    Risk Management

    • Defined as the process of identifying, assessing, and controlling threats to an organization's capital and earnings.
    • Involves a continuing process to identify, analyze, evaluate, and treat loss exposures, and monitor risk control and financial resources.
    • Threats can include financial uncertainty, legal liabilities, strategic management errors, accidents, or natural disasters.

    Risk

    • The possibility of something bad happening, which provides opportunities while exposing us to outcomes that we may not desire.
    • Involves uncertainty about the effects/implications of an activity with respect to something that humans value (health, well-being, wealth, property, or the environment).
    • Often focuses on negative, undesirable consequences.

    Credit Risk

    • The possibility that a bank borrower or counterparty will fail to meet its obligations following agreed terms.

    Risk Reduction

    • Involves identifying and assessing risks, and implementing various measures and processes aimed to reduce them.
    • Different processes, controls, and measures are in place to reduce the risk that organizations and workers face on a regular basis.

    Risk Mitigation

    • The process of planning for disasters and having a way to lessen negative impacts.
    • A strategy to prepare for and lessen the effects of threats faced by a business.
    • Takes steps to reduce the negative effects of threats and disasters on business continuity.

    Risk Management

    • Defined as the process of identifying, assessing, and controlling threats to an organization's capital and earnings.
    • Involves a continuing process to identify, analyze, evaluate, and treat loss exposures, and monitor risk control and financial resources.
    • Threats can include financial uncertainty, legal liabilities, strategic management errors, accidents, or natural disasters.

    Risk

    • The possibility of something bad happening, which provides opportunities while exposing us to outcomes that we may not desire.
    • Involves uncertainty about the effects/implications of an activity with respect to something that humans value (health, well-being, wealth, property, or the environment).
    • Often focuses on negative, undesirable consequences.

    Credit Risk

    • The possibility that a bank borrower or counterparty will fail to meet its obligations following agreed terms.

    Risk Reduction

    • Involves identifying and assessing risks, and implementing various measures and processes aimed to reduce them.
    • Different processes, controls, and measures are in place to reduce the risk that organizations and workers face on a regular basis.

    Risk Mitigation

    • The process of planning for disasters and having a way to lessen negative impacts.
    • A strategy to prepare for and lessen the effects of threats faced by a business.
    • Takes steps to reduce the negative effects of threats and disasters on business continuity.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Risk management is the process of identifying, assessing, and controlling threats to an organization's capital and earnings. It involves identifying, evaluating, and prioritizing risks to mitigate adverse effects.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser