3.2.2 Risk Calculation Facts

Evaluate a business risk using insurance as a risk management tool. Then, discuss the main components of an investment analysis report and how risk management fits into it.

A firm is assessing a risk using the risk management process and has just identified the risks to which it is exposed. What is likely to be the next stage in the process? Group of answer choices A. Evaluating risks B. Controlling risks. C. Analysing risks. D. Mitigating risks.

Using the following table as a guide, describe for each function (see Figure 11.1): A risk (an event or action that will cause the organization to fail to meet its goals/objectives). A control/process or use of technology that will address the risk. Function Risks Controls and Technology Marketing     Finance     Billing       AR (debit)         Sales (credit)     Collections       Cash (debit)         AR (credit)

ou are an investment banker performing due diligence on a potential acquisition for a financial buyer. For this particular transaction, the ability of the acquisition target to continue operations in severe weather is critical for profitability and the transaction’s success. As part of your due diligence you would most likely review which of the following reports? 1. SOC 1 2. PCI Compliance 3. SOC 2 4. SOC for cybersecurity

a)discuss the following risks: operational risk, model risk, liquidity risk, accounting risk, legal risk, tax risk, regulatory risk, settlement (Herstatt) risk, systemic risk    b)compare and contrast view-driven risk management and needs-driven risk management.     c)identify the key players in the risk management industry, and discuss how risk management requirements and practices differ amongst these key players.   d)discuss some important organizational considerations for an effective risk management system.  e)explain what is meant by enterprise risk management, and compare and contrast it with decentralized risk management.

Describe one type of systematic risk and one type of unsystematic risk and then explain how a business would create a plan to address the risk.

Discussion questions: What are the basic risks faced by financial intermediaries? Discuss each thoroughly.

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3. Risk registers would normally detail which of the following: (Select all that apply.) A. Risk level before controls are implemented B. Risk lével after controls are implemented C. Responsibility for managing risks D. The total cost of a control being implemented Answer: Page 3 of 11 ted States) E Focus МacВook Pro

Question 6: How can a firm assess risk and how can internal controls systems help minimize the financial risk?

Regarding risk levels, financial managers should: A. evaluate investor's desire for risk. B. avoid higher risk projects because they destroy value. C. pursue higher risk projects because they increase value. D. focus primarily on market fluctuations. Note: Provide short answer for this account question

Discuss the different types of risk that an investor may face when undertaking investment in financial assets.

Professional financial planners should   Multiple Choice A inform the client about the outcome of the plan. B assess their client's risk-and-return requirements on a one-time basis, explain the investment plan to the client, and inform the client about the outcome of the plan. C explain the investment plan to the client. D assess their client's risk-and-return requirements on a one-time basis. E explain the investment plan to the client and inform the client about the outcome of the plan.