FP II Unit 1 1.01

What can risk managers do to ensure the successful launch of a new product?

• act quickly to beat the competition

• evalate potiential gains and losses of the event

• develop fail-proof strategies for the calendar year

• ignore issues the company has encountered in the past

What category of risk typically has the most impact on the ability of a business to reach planned goals and objectives?

• financial

• hazard

• operational

• strategic

 

A good source of information about the retroactive risks of a business would be a/an:

• .

  environmental scan

• purchasing manager

• business incident log

• local weather forcast

The term risk is used in business to refer to the

• chances that consumers take

• possibility or probability of loss

• mistakes that employees make

• unontrollable possibility of danger

Technological innovations can increase the strategic risk for business by:

• causing interest rate growth

• making some products obsolete

• eliminating the convenience of buying in person

• decreasing the supply of people seeking employment

Which is often used to measure and rate potential risks

• an environmental scan

• transference strategies

• an impac/probability chart

• contingency and fallback plans

An earthquake is an example of which type of risk?

• operatinal

• pure

• speculative

• strategic

The two dimensions of risk are

• impact and avoidance

• probability and impact

• probability and avoidance

• mitigation and acceptance

Which statement accurately describes the nature of prospective risks

• They are typically more common than retroactive risks

• They are usually easier to identify than retroactive risks

• They have failed to happen before but could occur in the future

• They have occurred in the past so they will fail to reoccur in the future.

Which is an example of a hazard risk

• competitive advantage

• product shortages

• tornadoes

• inflation