11 Business Studies: Risk Management

True or False: Risk management is only about analysing the probability of negative events happening.

• True

• False

True or False: Strategic planning involves implementing policies.

• True

• False

True or False: Risk management is implemented to ensure the strategic plan and business operations are aligned.

• True

• False

True or False: Risk profiling refers to the degree a business is willing to accept risk in pursuit of creating value.

• True

• False

True or False: Business culture can be described as the vision, mission and value statement of the business.

• True

• False

True or False: Operational risks include socio-economic factors such as increased levels of unemployment.

• True

• False

True or False: Environmental risks could include flooding or droughts leading to difficulty in obtaining raw materials.

• True

• False

True or False: Customer complaints on social media fall under reputational risks.

• True

• False

True or False: A Decision Tree can be used as a risk estimation tool.

• True

• False

True or False: Risk estimation can be done internally or externally.

• True

• False