AIDA 182 EXAM QUESTIONS WITH COMPLETE ANSWERS { GRADED A+}
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Course
AIDA 182
Institution
AIDA 182
AIDA 182 EXAM QUESTIONS WITH
COMPLETE ANSWERS { GRADED A+}
Risk quadrants are different from risk classifications. Risk quadrants focus on
what? - The source of the risk itself and what part of the organization has
managed it in the past.
An enterprise risk management approach is categori...
Risk quadrants are different from risk classifications. Risk quadrants focus on
what? - ✔✔The source of the risk itself and what part of the organization has
managed it in the past.
An enterprise risk management approach is categorizing risks into quadrants. What
are hazard risks? - ✔✔Normally managed by risk management professionals.
What are the four risks in the enterprise risk management model? - ✔✔Hazard,
operational, financial, and hazard.
What risk quadrant is the change of stocks or bonds values because interest rate
changes in? - ✔✔Financial risks.
What is true of pure and speculative risks? - ✔✔All businesses involve
speculative risks.
,What is true of diversifiable and nondiversifiable risks? - ✔✔Systemic risks are
nondiversifiable generally.
What is an example of a strategic risk? - ✔✔A new computer chip that could give
a company growth.
What is an example of an operational risk? - ✔✔The ability of suppliers to
perform.
What is true of subjective and objective risks? - ✔✔Subjective risk can be present
where objective risk is not.
What is an example of a speculative risk? - ✔✔Investing in stock.
What is true of diversifiable versus nondiversifiable risk? - ✔✔Diversifiable risks
are not correlated and can be managed through diversification or spread of risk.
A company's fleet of cars is worrying the managers liquidity of the company and
fuel prices having an adverse effect is which type of risk quadrant? - ✔✔Financial
risk.
An employee embezzling funds from a company for not feeling adequately paid is
what risk? - ✔✔Both a hazard and an operational risk.
, Failing to respond to changing customer demands is an example of what risk? -
✔✔Strategic risk.
The fear of your home being hit by a storm and damaged or destroyed is what risk
for you? - ✔✔A subjective risk.
What quadrant of risk is a harmful chemical found in a building with unknown
harm to residents and to the clean up crew part of? - ✔✔A hazard risk.
Driving instead of flying because of feeling of safety is an example of what? -
✔✔A subjective risk.
Investing money in a rental property brings what? - ✔✔Both speculative and pure
risks. The property values can increase or decrease and the building could burn
down.
Increased competition is an example of what? - ✔✔A strategic risk.
Renovating a warehouse, purchasing a new order processing software, added two
new delivery trucks, and purchasing a production machine which also allows for
potential for a new product line, are all projects. Which project is the most
speculative? - ✔✔The new production machine.
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