Business Risk Management Quiz

What is the process of identifying, assessing, and mitigating potential threats to a business's objectives called?

• Financial Planning

• Risk Management

• Marketing Strategy

• Human Resource Management

Why is identifying and mitigating risks important in business planning?

• It increases employee turnover.

• It ensures sustainable growth, safeguards assets, and enhances decision-making.

• It reduces the need for marketing.

• It decreases product quality.

Which of the following is a type of market risk?

• Fluctuations in Demand and Supply

• Technological Advancements

• Political Instability

• Natural Disasters

What can lead to fluctuating demand for horse riding lessons?

• Technological Advancements

• Seasonal Variations

• Political Stability

• Consistent Consumer Preferences

Which of the following is a direct result of competition in the market?

• Decreased Market Saturation

• Increased Market Saturation

• Stable Demand

• Predictable Supply

What is the impact of operational risk on a company's performance?

• It can lead to inefficiencies and losses.

• It guarantees increased profits.

• It ensures market dominance.

• It reduces competition.

Which of the following is a key aspect of legal and regulatory risks?

• Market Expansion

• Compliance with Laws and Regulations

• Product Innovation

• Customer Satisfaction

What is the goal of proactive reputation management?

• To manage financial risks

• To enhance public perception and prevent crises

• To improve supply chain efficiency

• To upgrade technology continuously

What is one exit strategy for a business facing insurmountable financial challenges?

• Mergers and Acquisitions

• Selling the Business

• Liquidation

• IPO

What does IPO stand for in the context of exit strategies?

• Initial Private Offering

• International Public Offering

• Initial Public Offering

• Internal Public Offering