Question

1.Which one of the following deals with hazard risk:(A)Enterprise risk management(B)Traditional risk management(C)strategic risk management(D)financial risk management.

2.when slecting risk management technique to use,technique must considered context of your:-(A)lowest possible price point(B)neighbours activities(C)highest possible price point(D)risk appetite.

3.Match exposure with correct risk category for following:-strategic,price,credit,financial,operational ,hazard

(A)Interest rate risk(B)reputational Risk(C)cyber risk(D)Liability risk.

Answer 1

1. The hazards risk is covered under the enterprise risk management. The overall mitigation of risks for an organisation includes prevention against dangers, potential hazards or disasters. while all the other options are related to strategic risks management that involves finacial risk and other strategical failure risks.

2. The risk management strategy shall be based on the risk appetite of the organisation . It shall not be less or more than the risk appetite of the company. Because with risk comes the rewards and thus a company has to look for its risk averseness.

3. interest rate risk: Credit risk, financial and price risks are considered under the interest rate risks because of the fact that these affects the financials of the company

Reputational risk: Operational exposure leads to failure and damages the reputation.

cyber risk: Strategic risk because sometimes the company's data gets leaked and thus it can be a strategic failure.

Liability risk: Hazards risk leads to liabilities and thus classified under this