BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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pure risks
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uncontrollable risks
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speculative risks
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controllable risks
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Detailed explanation-1: -Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk. Business Risk: These types of risks are taken by business enterprises themselves in order to maximize shareholder value and profits.
Detailed explanation-2: -The Management Group, consisting of the President (Chair) and those responsible for the various business areas, bears the responsibility for implementing risk management, monitoring operational risks and measures related to risks.
Detailed explanation-3: -Whereas pure risk is beyond human control and can only result in a loss if it occurs, speculative risk is risk that is taken on voluntarily and can result in either a profit or loss. Speculative risks are thus considered controllable risks.