Develop plans to mitigate the risk. A detailed strategy for minimizing the impact of the risk could take many different forms, depending on the nature of the problem.

Q: Explain the difference between unique risk and systematic risk

A: Answer

Q: One of the most popular methods of analysing a technique involves all the following except: A.…

A: Bow -tie risk technique is to find out how much are effective the new control being adapted as…

Q: Define Risk aversion

A: A risk averse saver is an investor who favors inferior returns with recognized risks somewhat than…

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: Discuss some of the techniques available to reduce risk exposures.

A: Risk exposure is the estimated potential loss from ongoing or upcoming business operations. The…

Q: In the context of your organization, evaluate its main sources of potential financial risk using…

A: Financial risk: Financial risk is defined as the chance of uncertainty in a financial incident, such…

Q: What is the criticism for using SMB and HML as risk factors?

A: The Fama and French Three-Factor Model (or Fama French Model for short) is an asset pricing model…

Q: What is the difference between systematic risk and unsystematic risk? Give an example of each.

A: Risk: The possibility that the actual outcome in a situation will differ from the expected outcome…

Q: Explain political risk

A: Political risks are important to be considered because they have an impact on the profitability…

Q: With the aid of an appropriate diagram, explain 3 main categories of attitude towards risk and…

A: The three types of risk which the investors are categorized are as follows: Risk Seeker – An…

Q: What three techniques are used to assess stand-alone risk?

A: Stand-alone risk: Stand-alone risk is the risk related with the anticipated project cash flow. The…

Q: Explain the specific relationship between risk and reward and why this relationship must be true.

A: Risk refers to probability for loss of investment value by an investor whereas Reward refers to…

Q: What controls would you implement to

A: Internal Control system: Internal control system can be defined as the set of policies and…

Q: What should occur when a low level of Detection Risk is acceptable?

A: Detection risk is the risk that procedures performed to reduce audit risk will not detect a material…

Q: A system development project is nearing project closing when a previously unidentified risk is…

A: A system development project is a project which has the purpose of upgrading the system and…

Q: What is the purpose of NPV analysis? Be sure to discuss the concepts of risk and return in your

A: Net present value NPV is used quite extensively in capital budgeting decisions whether to accept or…

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: What are some programs that an entrepreneur can use to reduce risk?

A: Businesses use various risk management programs and strategies to eliminate or minimize the impact…

Q: What are self-interest threat, self-review, and advocacy threats? Give an example of each threat.

A: The integrity of the financial statements depends upon the independence of the auditor. It means…

Q: What is shared risk? Use an example to explain the shared risk happen and who will involved?

A: Risk means the uncertainty of happening of an event. When the risk is higher than the uncertainty of…

Q: List and define the different major categories of risk events

A: Risk can be defined as the variability of returns. When the variability of the return is high, in…

Q: Provide a comprehensive definition of risk

A: Risk is described in financial terms as the probability that the actual gains of an event or…

Q: How to minimize or eliminate risk using diversification or other means.

A: Diversification is a process investment in multiple assets with the available amount.

Q: What are the two stages in risk assessment?

A: Risk assessment is the process which involves analysis & identification of events that can have…

Q: _________ factors are conditions and other variables that in their present, or absence, as the case…

A: Less start with basic understanding. For auditing being made, audit needs to make plan for…

Q: Discuss the use of sensitivity analysis as a way of evaluating project risk.

A: Sensitivity analysis Sensitivity analysis is said to be an evaluation tool that makes an assessment…

Q: Explain relevant risk

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: We manage risk so we know which risks are worth taking.

A:

Q: Explain risk aversion

A: Introduction: Risk can be characterized in terms of the uncertainty of future consequences resulting…

Q: Summarize some of the impacts that the Coronavirus impact has had on the risks that organizations…

A: Due to corona virus there has been much impact on the organizations and even some of them have…

Q: What are the characteristics of an effective recovery strategy in the event of a disaster?

A: Technological advancements in business have increased the potential risk to business. Its existence,…

Q: "Risk management is essentially about looking at your project goals and finding out what the dangers…

A: Project risk management is the process of identifying, analysing, and responding to any risk that…

Q: What factors led to the success of SafeSave?

A: The SafeSave payment services is an online platform that provides the facility for the payments for…

Q: Why is it important to be able to quantify risk?

A: Risk is the chance that an outcome of an investment's actual gain will differ from an expected…

Q: Illustrate the main factors of Project Risk?

A: The project risk is defined as the uncertain event or condition that occurs mainly on positive or…

Q: Discuss how diversification can enhance risk reduction?

A: Introduction : Diversification can be understood as the act of distributing resources in such a…

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: Provide one example of a calculation of risk and discuss its significance.

A: Risk is a chance that the actual gain or outcome from the investment will differ from the expected…

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…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.