Risk Management

Investment decisions are particularly risky because:

• could happen

• All decisions are risky

• they are relatively long term; and

    involve large amounts.

• they are relatively short term and involve small amounts

Sensitivity analysis is an assessment:

• It provides useful insights to projects.

• the weighted average of the various values, weighted by the probability

  of occurrence..

• Provide a matrix with a risk assesment

• Provide multiple options in order to deal with the unknow

What is an issue ?

• A potential Risk

• Risk that become materialized

• A risk with a high probability and low impact

• A risk with a low probability and low impact

Risk Appetite is ....

• The Degree, amount or volume of risk that an organization or individual will withstand

• The Degree, of uncertainy an entity is willing to take on in anticipation of reward

• Refers to measures along the level of uncertany or the level of impact at which a stakeholder may have an specific interest

Risk tolerance is ....

• The Degree, amount or volume of risk that an organization or individual will withstand

• The Degree, of uncertainy an entity is willing to take on in anticipation of reward

• Refers to measures along the level of uncertany or the level of impact at which a stakeholder may have an specific interest