All of the following are reasons why a risk exposure should be monitored more frequently EXCEPT...

All of the following are reasons why a risk exposure should be monitored more frequently EXCEPT

the risk exposure materiality is rated as high.
the underlying asset's volatility increases.
management's risk tolerance increases.
the risk exposure has increased likelihood of losses.

An organization's cost of risk from losses is

the break-even point between the costs of insurance and the costs of uninsured losses for an organization.
the cost of all insurance and related administrative costs.
the total of all costs from both actual and potential losses.
the cost of all uninsured losses for an organization.

Solutions

Expert Solution

Answer 1: Option C

Explanation: If the management’s risk tolerance increases then, they are in a position of being more risk accepting while seeking more returns. In such a scenario, the risk exposure may not be monitored more frequently.

Answer 2: Option C

Explanation: The firm’s cost of risk from losses is the sum of all costs from both actual and potential losses.

keosha answered 1 year ago

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