BSA II

Demand risk, Operational risk, price risk, customer experience risk, Quality risk, Brand risk, Inventory risk, Reputation is related to

• Market Risk

• Product risk

• Credit risk

• Political risk

China Aviation Oil (Singapore) Corporation Ltd. (CAO) was involved in the biggest scandal of the city-state of Singapore since the Nick Leeson case (1995), in which Baring Bank collapsed and lost around $1.3 billion in speculative trading. Following losses of around $550 million, CAO filed for bankruptcy in November 2004. Improper application of accounting principles, and inadequate risk management systems for the speculative options deal, were the major contributing factors towards CAO’s failure. State the type of risk they faced

• Product risk

• Market risk

• Business probity risk

• Environment risk

Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policymakers or military control.

• Political risk

• Market risk

• Environment risk

• Technology risk

The possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

• Regulatory risk

• Compliance risk

• Technology risk

• Credit risk

_________is the risk that a change in laws and regulations will materially impact a security, business, sector, or market.

• Compliance risk

• Regulatory risk

• Economic risk

• Business probity risk

In 1992, 79-year-old Stella Liebeck of Albuquerque, N.M., sued McDonald’s after the fast food chain’s coffee caused severe burns when she accidentally spilled some onto her lap. Liebeck offered to settle the claim for $20,000, but McDonald’s chose to fight it. During the trial, it came to light that McDonald’s was serving their coffee at a potentially dangerous temperature — between 180 and 190 degrees — while most other fast food restaurants serve coffee in the range of 135 to 140 degrees

• Product risk

• Market risk

• Environment risk

• Business probity risk

On April 20, 2010, the oil drilling rig Deepwater Horizon, operating in the Macondo Prospect in the Gulf of Mexico, exploded and sank resulting in the death of 11 workers on the Deepwater Horizon and the largest spill of oil in the history of marine oil drilling operations.

• Environment risk

• Climate risk

• product risk

• compliance risk