MANAGEMENT

BUISENESS MANAGEMENT

RISK MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is a risk?
A
Risk is the losing something of value.
B
Risk is gaining something of value.
C
Risk is the potential to lose or gain something of value.
D
None of the above
Explanation: 

Detailed explanation-1: -Risk is the potential of gaining or losing something of value. Values (such as physical health, social status, emotional well-being, or financial wealth) can be gained or lost when taking risk resulting from a given action or inaction, foreseen or unforeseen.

Detailed explanation-2: -In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environment), often focusing on negative, undesirable consequences.

Detailed explanation-3: -Definition: Risk implies future uncertainty about deviation from expected earnings or expected outcome. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment.

Detailed explanation-4: -Value of risk (VOR) is the financial benefit that a risk-taking activity will bring to the stakeholders of an organization. All activities that a company may undertake, from entering a new market to developing a new product, carry risk.

Detailed explanation-5: -Risk is defined in financial terms as the chance that an outcome or investment’s actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment.

There is 1 question to complete.