Financial Risk Management Quiz

Refers to the possibility of losing money or experiencing adverse financial outcomes due to various uncertainties. It encompasses the potential for financial loss or reduced profitability for businesses, investors or individuals.

• LIQUIDITY RISK

• FINANCIAL RISK

• RISK MITIGATION

• RISK ASSESSMENT

The process of minimizing the chances and consequences of potential threats to an organization's goals, daily operations, and public image.

• CONTINGENCY PLANNING

• RISK REGISTER

• RISK MITIGATION

• RISK APPETITE

Is a strategy that involves investing a fixed amount of money at regular intervals, regardless of market conditions.

• DOLLAR-COST AVERAGING

• HEDGING STRATEGIES

• DIVERSIFICATION

• POSITION SIZING

Is a financial term that refers to the degree of fluctuation in the prices of securities, assets, or financial instruments within a specific market or across various markets over a given period of time.

• ECONOMIC INDICATORS

• GEOPOLITICAL EVENTS

• IMPLIED VOLATILITY

• MARKET VOLATILITY

General liability insurance is vital for new businesses as it protects them against claims of bodily injury, property damage, and other risks that can arise from daily operations.

• EARLY STAGE PROTECTION

• LIABILITY MANAGEMENT

• ENCOURAGING GOOD PRACTICES

• FINANCIAL PROTECTION

Also known as exchange rate risk

• Interest Rate Risk

• Credit Risk

• Refinancing Risk

• Currency Risk

Largely caused by economic uncertainties

• Fraud and Corruption

• Market Risk

• Legal and Regulatory Risk

• Liquidity Risk

Strategies and Actions implemented to lessen the probability and severity of risks

• Risk Management

• Risk Assessment

• Risk Mitigation

• Risk Appetite

Evaluating the impact of potential risks

• Risk Management

• Risk Assessment

• Risk Mitigation

• Risk Appetite

A framework for risk mitigation

• 4F’s

• 4R’s

• 4T’s

• 4P’s