BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is an example of legal risk?
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Change in regulations surrounding food production
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Change in consumers’ tastes and preferences
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A change in interest rates
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None of the above
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Explanation:
Detailed explanation-1: -What is Regulatory Risk? Regulatory risk is the risk that a change in regulations or legislation will affect a security, company, or industry. Companies must abide by regulations set by governing bodies that oversee their industry. Therefore, any change in regulations can cause a rippling effect across an industry.
Detailed explanation-2: -Production risks relate to the possibility that your yield or output levels will be lower than projected. Major sources of production risks arise from adverse weather conditions such as drought, freezes, or excessive rainfall at harvest or planting.
Detailed explanation-3: -These risks are further subdivided into regulation, litigation, and contract risks.
There is 1 question to complete.