Risk Management Review
The two dimensions of risk are
Impact and Probability
An example of an internal financial risk is
Improper budgeting, poor training, employees
A common transference device is a(n)
Insurance Policy
Businesses are most likely to prepare contingency and fallback plans for risks that they choose to
Accept the risk
Hospitals, fire and rescue services, and police departments, which attempt to avoid risk as much as possible, are usually risk-__________ organizations.
Averse
If a business chooses not to do something that it considers risky, it is __________ the risk.
Avoiding
A good source of information about a business's retroactive risks would be a(n)
Business Incident logs
A business is most likely to mitigate a risk that is __________ to eliminate completely.
Difficult and expensive
What do risk managers need to do to help their company successfully launch a new product?
Evaluate the potential gain and losses of the launch
Technological innovations can increase strategic risk for business by
Making some products obsolete
Poor product development, unreliable manufacturing equipment, and product shortages are examples of __________ risks.
Operational
An earthquake is an example of a __________ risk.
Pure
What category of risk typically has the most impact on a business's ability to reach its goals and objectives?
Strategic Risks
The term risk is used in business to refer to the
The possibility of loss or gain
Businesses typically accept a risk's consequences if
The potential payoff is higher than the losses
Walt's World of Winter ski shop manages existing risks as appropriate, but it does not take risks on new products, new markets, or new equipment. Walt's is a risk-__________ organization.
Tolerant
An example of hazard risk would be:
Tornadoes, crime, etc.
Which of the following statements accurately explains the nature of prospective risks:
which have not happened before but could occur in the future