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RM 405 Exam 1 questions with correct answers rated A+ passed

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RM 405 Exam 1 questions with correct answers rated A+ passed

Institution
Rm
Course
Rm








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Institution
Rm
Course
Rm

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Uploaded on
December 2, 2024
Number of pages
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Written in
2024/2025
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RM 405 Exam 1 questions with correct
answers rated A+ passed

Strategic Risk Examples - correct answer ✔✔Brick & mortar retailers efforts to compete with online
shopping.

US manufacturers' efforts to reduce costs of operation.



Financial Risk Examples - correct answer ✔✔Transportation firms response to fluctuating fuel prices.

2008 banking crisis.



Operational Risk Examples - correct answer ✔✔Faulty components from outsourced suppliers in supply
chains (e.g. Takata airbags, Chipotle's issues with E coli).

Hacking data breaches - Facebook

Questionable business practices.



Hazard Risk Examples - correct answer ✔✔HR Issues

Property Risk

Liability Risk

Earthquakes, hurricanes, 9/11 attacks.



Common characteristics of ERM - correct answer ✔✔Top down management.

Broad scope of loss exposures.

Systematic process.



COSO - correct answer ✔✔Sponsored by big 5 accounting corporations.



Assess internal environment: What is the risk appetite of firm/board?

Set strategic goals regarding RM, based on risk appetite

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