If the probability of a "super-evenl'' increases, does the"unique-event" risk increase or decrease in importance?Why?
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| If the probability of a "super-evenl'' increases, does the "unique-event" risk increase or decrease in importance? Why? |
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- According to the Institute of Internal Auditors, risk is a combination of the probability of an event and its consequence and that consequences can range from positive to negative True or False?Changes in product price and levels of competition are not an examples of systematic risks. True or FalseHow would you go about attempting to come upwith the probability of a “super-event” or the probability of a“unique-event?” What factors would you consider?
- Explain the basic concept of the RiskMetric model. What are the major disadvantages? How can the major disadvantages be addressed?You are a risk manager of a school bus company in Hong Kong, your boss owns over 1,000 school buses. During COVID 19, almost all the school buses parked in no covered car park every day because students no need to be back to school. Your boss is considering a partial retention program for physical losses to the school buses. a) Identify the factors that your company should consider before it adopts a retention program for physical damage losses to school buses. b) If a retention program is adopted, what are the various methods you can use to pay for physical damage losses to school buses? c) Identify two risk-control measures that could be used in your company’s retention program for physical damage lossesDistinguish between risk probability, risk impact and risk exposure. Include their impact on risk analysis within your answer.
- You forgot risk mitigation?Which of these types of risks increases in strong correlation with a rise in interest rates? Credit Risk Operational Risk Off-Balance Sheet RiskIf a product is dangerous beyond the expectation of the ordinary consumer of the product and a less dangerous alternative was economically feasible for the manufacturer, this is considered to be what?