BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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uncontrollable risk
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natural risk
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product liability
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None of the above
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Detailed explanation-1: -Systematic risk is not diversifiable (i.e. cannot be avoided), while unsystematic can generally be avoided.
Detailed explanation-2: -Nature: Systematic risks are unavoidable and uncontrollable, whereas unsystematic risks are avoidable and controllable. Factors: Systematic risks result from external factors that occur at a macroeconomic level, which is why they’re unavoidable and uncontrollable.
Detailed explanation-3: -Uncontrollable Risk Factors These are risk factors that are not within our control. Heredity – A parent, brother or sister has had coronary heart disease, a heart attack or coronary surgery (before age 55 in men and before age 65 in women). Advancing Age – Men above the age of 55-60 and women 65 and older.
Detailed explanation-4: -Inherent Risk is typically defined as the level of risk in place in order to achieve an entity’s objectives and before actions are taken to alter the risk’s impact or likelihood. Residual Risk is the remaining level of risk following the development and implementation of the entity’s response.