This Set contains True\/False Type and Multiple Choice Question\t\u00a0\tTrue\/False\t1 \ufffd\u00a0\u00a0\u00a0\u00a0 The art of risk management is to identify risks specific to an organization and to respond \tto them in an appropriate way. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\t2 \ufffd\u00a0\u00a0\u00a0\u00a0 All levels of an organization do not need to be included in the management of risk in order for it to be\t \ufffd \ufffd\u00a0 effective. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\t3 \ufffd\u00a0\u00a0\u00a0\u00a0 Qualitative Risk Analysis Techniques seek to compare the relative significance of risk facing a project in terms\t \ufffd \ufffd\u00a0 of the effect of their occurrence on the project outcome. \ufffd \ufffd\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\t4 \ufffd\u00a0\u00a0\u00a0\u00a0 Quantitative techniques are used when the likehood of the investment or project achieving its objectives with\t \ufffd \ufffd\u00a0 time and budget is required. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\t5 \ufffd\u00a0\u00a0\u00a0\u00a0 A forward exchange contract requires delivery at a specified future date of one currency for a specific amount\t \ufffd \ufffd\u00a0 of another currency. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\t6 \ufffd\u00a0\u00a0\u00a0\u00a0 Risk tolerance is the degree that one is willing to risk losing some of his original investment in exchange for\t \ufffd \ufffd\u00a0 a chance to earn a higher return. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\t\u00a0\tMultiple Choice\t\u00a0\t1. \ufffd\u00a0\u00a0\u00a0 Which of the following best describes risk management?\t \ufffd \ufffd\u00a0 a. A formal process to identify risks. \ufffd \ufffd \t \ufffd \ufffd\u00a0 b. A formal process to assess, identify and manage risk.\t \ufffd \ufffd\u00a0 c. A formal process to cover up mis-management.\t \ufffd \ufffd\u00a0 d. A formal process by the Board to direct operating activities.\t \ufffd \ufffd\u00a0 e. None of the above. \ufffd \ufffd\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\t2 \ufffd\u00a0\u00a0\u00a0\u00a0 Which of the following are soft benefits of risk management?\t \ufffd \ufffd\u00a0 a. Enhancement of team spirit. \ufffd\u00a0\u00a0 \t \ufffd \ufffd\u00a0 b. Proper risk allocation. \ufffd \t \ufffd \ufffd\u00a0 c. Improved Communications. \ufffd\u00a0\u00a0\u00a0 \t \ufffd \ufffd\u00a0 d. Improved Profits. \ufffd \ufffd\u00a0\u00a0\u00a0 \t \ufffd \ufffd\u00a0 e. a and c. \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\t3 \ufffd\u00a0\u00a0\u00a0\u00a0 What is the Delphi technique? \ufffd\u00a0\u00a0\u00a0 \t \ufffd \ufffd\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\t4 \ufffd\u00a0\u00a0\u00a0\u00a0 Which of the following are tools to manage risk?\t\u00a0\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\t5 \ufffd\u00a0\u00a0\u00a0\u00a0 Risk management is an essential part of the project and business planning cycle which requires which of the\t \ufffd \ufffd\u00a0 following: \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0\t6 \ufffd\u00a0\u00a0\u00a0\u00a0 Market risk refers to: \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0\t7 \ufffd\u00a0\u00a0\u00a0\u00a0 The proposed risk management assessment system will do all of the following, except:\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0\t8 \ufffd\u00a0\u00a0\u00a0\u00a0 Key components of program management include which of the following:\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0\t9 \ufffd\u00a0\u00a0\u00a0\u00a0 Which of the following are outputs of risk identification\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0\t10 \ufffd\u00a0\u00a0 Country risk analysis involves assessing which of the following?\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0\t11 \ufffd\u00a0\u00a0 Monte Carlo simulation does which of the following?\t \ufffd \ufffd\u00a0 a. Gives you a practical, virtual simulation.\t \ufffd \ufffd\u00a0 b. Does not produce a mathematical model.\t \ufffd \ufffd\u00a0 c. Produces a mathematical model.\u00a0 \t \ufffd \ufffd\u00a0 d. a & b. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 \t \ufffd \ufffd\u00a0 e. b & c. \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 \t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\t12 \ufffd\u00a0\u00a0 Which of the below is the best definition of business risk?\t \ufffd \ufffd\u00a0 a. The variability in a firm’s earnings per share that derives from its sales variability in conjunction with fixed\t \ufffd \ufffd\u00a0 interest costs and debt service. \ufffd\u00a0\u00a0 \t \ufffd \ufffd\u00a0 b. The chance that a business firm will not be able to repay a loan.\t \ufffd \ufffd\u00a0 c. The chance that paying the interest due to a firm’s creditors will result in losses to its bond holders.\t \ufffd \ufffd\u00a0 d. The variability in a firm’s earnings per share that derives from its sales variability in conjunction with\t \ufffd \ufffd\u00a0 fixed operating costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
This Set contains True\/False Type and Multiple Choice Question \u00a0 True\/False 1 \ufffd\u00a0\u00a0\u00a0\u00a0 The art of risk management is to identify risks specific to an organization and to respond to them in an appropriate way. \ufffd \ufffd \ufffd \ufffd \ufffd Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216642","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216642"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216642\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}