18 Questions
Which of the following is an example of a particular risk?
Car theft
Which of the following is a type of enterprise risk?
Liquidity risk
Which of the following is an example of a strategic risk faced by an enterprise?
Oil exploration
Which of the following is an example of an operational risk faced by an enterprise?
Fraud
Which of the following is an example of a transaction risk faced by an enterprise?
Negligent operation of vehicles
Which of the following is a type of financial risk faced by an enterprise?
Rapid inflation
What type of risks does strategic risk encompass?
Poor leadership and ineffective governance
What is one of the risks associated with inadequate governance mentioned in the text?
Reputation risk
Which risk refers to the risk to earnings or capital arising from negative public opinion?
Reputation risk
What should businesses do to protect against the risks associated with poor governance structures?
Comprise boards with the right mix of individuals
Which of the following is considered an external risk under strategic risks?
Changes in the business environment
What is a key aspect of reputation risk, as mentioned in the text?
It affects an enterprise's ability to access capital
Which type of risk involves the possibility of a business not being able to meet its financial obligations on time?
Liquidity risk
What is a common example of operational risk mentioned in the text?
Transaction risk
In the context of operational risks, what does 'inconsistent implementation of programs and strategies' refer to?
Failure to execute plans effectively
What type of risk is commonly associated with intentional cheating by an employee or client?
Fraud risk
What is the key characteristic of transaction risks in a business?
Daily occurrence in processing transactions
Which risk arises from inconsistencies between inventory management system data and accounting system data?
Operational risk
Explore the concept of strategic risks in business, including internal risks from adverse decisions, poor leadership, and external risks from changes in the competitive environment. Learn about governance risk and its impact on an organization's success.
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