Business Risk

What economic system is mentioned as the foundation of the United States?

• Capitalism

• Socialism

• Communism

• Feudalism

What are examples of natural disasters?

• Tornado, earthquake, hurricane, and flood

• Cybercrime, malware, and ransomware

• Stock market crash and inflation

• Theft, vandalism, and burglary

Which of the following can interrupt service and damage company files?

• Viruses, worms, and malware

• Natural disasters

• Speculative risks

• Insurance policies

What is difficult to predict and normally occurs randomly?

• Pure risk

• Speculative risk

• Insurance claims

• Investment returns

Which risk involves the chance of a set of factors dragging down an industry's performance?

• Market Risk

• Product Risk

• Industry Risk

• Strategic Risk

What is a consequence of not paying attention to the world around you in terms of strategy?

• Inflation

• Misalignment with the environment

• Supply chain disruption

• Customer service issues

What is risk mitigation?

• Evaluating risks and threats daily

• Ignoring potential risks

• Increasing business risks

• Avoiding all risks

What is a key component of risk mitigation?

• Identifying and tracking risks

• Ignoring potential threats

• Increasing speculative risks

• Reducing business operations

What is the relationship between pure risks and speculative risks?

• Both need to be prevented and managed

• Only pure risks need attention

• Only speculative risks are important

• Neither needs to be managed

What can career risk lead to?

• Increased job security

• Loss of income

• Guaranteed promotions

• Higher job satisfaction