GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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involves estimating the cost of the risk to the business if it occurs
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government regulations, foreign influences
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technical failures, not keeping up-to-date with technology
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unemployment rates, interest rates, stock market
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loss of business partners, decrease in customer confidence
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Detailed explanation-1: -Risk estimation (also referred to as risk characterization) is the final step in risk assessment. Its goal is to produce measures of the health, safety, and environmental risks that are being assessed.
Detailed explanation-2: -Impact on the company Business risk causes companies not to be able to meet targets or achieve company goals. They are not able to provide adequate returns to investors. Uncertainty can also result in business failure and even bankruptcy. Risks have a more significant impact when a company has high leverage.
Detailed explanation-3: -Risk analysis is the process of identifying and analyzing potential future events that may adversely impact a company. A company performs risk analysis to better understand what may occur, the financial implications of that event occurring, and what steps it can take to mitigate or eliminate that risk.
Detailed explanation-4: -Assess the probability of each risk occurring, and assign it a rating. For example, you could use a scale of 1 to 10. Assign a score of 1 when a risk is extremely unlikely to occur, and use a score of 10 when the risk is extremely likely to occur. Estimate the impact on the project if the risk occurs.