_________ factors are conditions and other variables that in their present, or absence, as the case may be, either exacerbate or diminish the underlying risk.

Q: Distinguish between inherent risk and control risk

A: Inherent risk: Inherent risk measures the auditor’s assessment of the susceptibility in a material…

Q: What is meant by risk? Why must it be managed properly?

A: Risk can be defined as the probability of an event occurring and having consequences. Standard…

Q: What is the significance of the Value at Risk (VaR) method?

A: The question is based on the concept of Value at Risk (VaR). VaR is a statistical measure of risk in…

Q: evaluate the main sources of potential financial risk using suitable techniques.  For each risk area…

A: The question is based on the concept of financial risk and different sources of such risk .

Q: What is risk? What is the difference between systematic and unsystematic risk?

A: Risk: Risk can be defined as upcoming uncertainty about variation from anticipated earnings or…

Q: Explain what is risk decompositon

A: Risk is referred as the future uncertainty with reference to the deviation from an expected earnings…

Q: Define Risk in general

A: In finance, risk is defined as the level of vulnerability that potentially creates financial loss…

Q: All of the following are acceptable way to handle risk, EXCEPT: a) Avoid it b) Ignore it c) Shift…

A: The  ways to handle risk as follows: Avoid risk: You can also alter your tactics totally to evade…

Q: Which of the following is not a category of risk response strategies? A. Acceptance. B.…

A: Risk mean the situations or circumstances which can lead to unfavourable or potential losses to the…

Q: Describe Inherent Risk.

A: Definition:   Audit Planning: Audit planning is the first step in the auditing process. The auditor…

Q: Question 3 a. Risk occurs where there are several possible outcomes which can be assigned the…

A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Can both moral hazard and adverse selection occur in the insurance market s the difference between…

A: The insurance industry is an important part of the overall financial industry. Insurance is bought…

Q: Briefly define and give examples of each of the following components of total risk. Which type of…

A: Risk refers to the variability of returns. It is the possibility or the likelihood that the actual…

Q: Is funding a type of risk?

A: Funding means providing the funds to the party and charging interest rates from them. Firms need…

Q: Finaancial risk is not directly associate with..    a) ROE b) EBIT c) EPS d) EAT

A: The Financial risk is a risk of loosing money on am investment or investment opportunities.…

Q: averse

A: Risk is involved in everything. Risks will be there right from the task that we do till the…

Q: as fortuitous event? J

A: The pandemic issue has caused in an increase in breach of contract processes worldwide,…

Q: How do the passive losses rules and the at risk rules work in conjunction to limit losses?

A: Passive losses: These are the losses that take place when expenses exceed the income in the passive…

Q: Distinguish between risk and return and briefly describe the relationship that exists between them.

A: Risk: It is the potential loss of an investor for investing in financial security based on his loss…

Q: How are total risk, nondiversifiable risk, and diversifiable risk related? Why is nondiversifiable…

A: Total risk is measured by the standard deviation of returns; it has two elements non-diversifiable…

Q: George wants to calculate risk using risk assessment matrix ,should he assess for the worst credible…

A: Risk assessment matrix is a method used for finding the risk. This method prioritizes the risk by…

Q: How does a control manage a specific risk Select one: 1- if prevents the occurrence of the event b-…

A: Explanation : In simple words, controlling refers to the process under which an individual or an…

Q: Distinguish between: Systematic risk and Unsystematic risk

A: The risks faced by the company arises from both micro as well as macro levels. The risk arising out…

Q: real life examples of systematic and unsystematic risk

A: Systematic risk - Systematic risk refers to that risk that is inherent to a market segment or the…

Q: What is a fortuitous event? Is there any difference between a fortuitous event and a force majeure?

A: In Chile, a chance occasion is an idea characterized by law in which mitigates the obligor from…

Q: Define uncertainity ?

A: "Uncertainty" in accounting refers to the difficulty of predicting outcomes because of limited or…

Q: Define the term risk?

A: Types of risk: Investment risk Market risk Inflation risk Business risk Liquidity risk

Q: Explain Briefly these five methods of dealing with risks. the risk may be avoided the risk may be…

A: The act of discovering, analyzing, and subjugating these risks is known as pure risk management, and…

Q: Risk is the uncertainty that matters because it affects people’s welfare. Briefly define and give…

A: Diversifiable Risk: Unsystematic Risk is also known as Diversifiable Risk and can be defined as a…

Q: What risk does Beta measure?

A: There are two types of risks: 1) Systematic risk 2) Unsystematic risk 1. Systematic risk : It is…

Q: Explain how NPV varies with risks. Show your argument using formulate for cases with different…

A: NPV or Net present value is the difference between the present value of cash inflows and cash…

Q: 1. Show (give example) how an individual’s risk aversion can be estimated. 2. Explain why we can…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: One of the characteristics of an insurable risk is that a risk needs to be determinable and…

A: An insurable risk class is a group of people or businesses with similar characteristics that are…