Financial Risk Management TOP Exam Questions And CORRECT Answers

Risk ManagementThe process of measuring or assessing risk and developing strategies to manage it. A systematic approach in identifying, analyzing and controlling areas or events with a potential for causing unwanted change. Risk Management (ISO 31000)Identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor and control the probability and/or impact of unfornate events and to maximize the realization of opportunities. Basic Principles of Risk Management1. create vale - benefit is more than the cost. 2. address uncertainty and assumptions. 3. integral part of org. processes and decision-making. 4. DIRTT (dynamic, iterative, responsive to change, tailorable, transparent) 5. create capability of continual improvement and enhancement considering the best avail. info and human factors. 6. be systematic, structured and continually or periodically reassessed