Business Risk Analysis Recap

Risk management is important to increase uncertainty and fewer surprises

• True

• False

Market risk is the risk of monetary loss arising from an adverse move in market prices or rate

• True

• False

Two dimensions in measuring risk: probability and frequency

• True

• False

In general, we should avoid risk with low probability and low impact

• True

• False

KCI, KPI, and KRI are tools to conduct risk monitoring

• True

• False

Risks only have negative consequences and should be completely avoided

• True

• False

Risk identification is the first step in the risk management process after establishing the context of an organization

• True

• False

Transferring risk to a third party is a common risk mitigation strategy

• True

• False

Risk management is only important for large and complex companies

• True

• False

Monitoring risks is the final stage in the risk management cycle

• True

• False