BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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____ is the measurement of how often a particular risk is likely to occur.Page 51
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Severity
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Cost
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Impact
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Frequency
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Explanation:
Detailed explanation-1: -Risk-or the probability of a loss-can be measured using statistical methods that are historical predictors of investment risk and volatility. Commonly used risk management techniques include standard deviation, Sharpe ratio, and beta.
Detailed explanation-2: -As a guide, it is recommended that risk assessments be reviewed on an annual basis.
Detailed explanation-3: -The standard deviation then studies the dispersion of values from a mean (average). This is the most widely used measure of risk in the world today. All major financial models use the concept of standard deviation.
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