EEL 419 -a

What is risk?

• The possibility of something good happening

• The possibility of something bad happening

• The certainty of something bad happening

What is the effect of uncertainty on objectives?

• Opportunity

• Risk

• Profit

• Loss

How does risk affect our decision-making?

• It encourages us to take more risks

• It has no effect on our decision-making

• It often stops us from taking action

What is the difference between eliminating risk and reducing risk?

• Eliminating risk means there is no possibility of something bad happening, while reducing risk means there is a lower chance of something bad happening.

• Eliminating risk means taking more risks, while reducing risk means taking fewer risks.

• Eliminating risk and reducing risk mean the same thing.

How can we reduce risk?

• By taking the right decisions

• By taking more risks

• By ignoring the risks