SYSTEMS DEVELOPMENT ANALYSIS
SYSTEMS DEVELOPMENT METHODS AND TOOLS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Failure to meet project objectives.
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Extend project timeline
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Using shared resources
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Loss of competitive advantage.
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Detailed explanation-1: -The correct answer is (d) eliminating all risks. Risks cannot be completely eliminated. However, they can be mitigated. The four stages of risk management are identifying risks, assessing them, controlling them, and reviewing the policies.
Detailed explanation-2: -Companies are exposed to three types of risk caused by currency volatility: transaction exposure, translation exposure, and economic or operating exposure. The risks of operating or economic exposure can be alleviated through operational strategies and currency risk mitigation strategies.
Detailed explanation-3: -Organizations must effectively manage four categories of loss exposures: property, liability, personnel, and net income loss exposures. Understanding the definitions of these loss exposures helps insurance personnel to properly identify and analyze them.