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A. The negative effect of events certain to occur
B. Measured in terms of impact
C.. Measured in terms of likelihood
D. Both A&B
E.Both B&c
E is the correct answer ....
Both B &C; Risk = Impact * Likelihood
A is wrong because Risk is not only possible events with negative outcomes it also includes events with positive /uncertain outcomes.
The chance that an investment's actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment. A high standard deviation indicates a high degree of risk.Many companies now allocate large amounts of money and time in developing risk management strategies to help manage risks associated with their business and investment dealings. A key component of the risk mangement process is risk assessment, which involves the determination of the risks surrounding a business or investment.
e
Measured in terms of impact
Measured in terms of likelihood
D- both A & B they are those activity that might be able to have negative impact to the financial activity of the company in the near future
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The answer is (E) risk is an event that may occur and have an impact on the acheivement of the company obectives, risk is measured in terms of impact and likelihood.
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E------------------------------------b&c
A. The negative effect of events certain to occur
The correct answer is letter A
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