AIDA 182 Exam Questions with 100% Correct Answers | Latest Version 2024 | Verified

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 wh