Chapter 7, Problem 20RQ

Explanation of Solution

Risk management:

• Forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact is called Risk management.
• Microsoft operates in a competitive, rapidly advancing technology, with high-risk business and ever shortening product life cycles.
• Microsoft’s risk management group in that context seeks to construct and implement an enterprise-wide risk management system

Phases used in risk management approach:

• Assessing Risk: Identifying and prioritizing risks to the business...