Chapter 1: Principles of Risk Management Flashcards
1
Q
What is PESTLE analysis?
A
Analysis of macro environment
Done by brainstorm with internal/external experts
2
Q
What is Enterprise risk?
A
Comprehensive assessment and management of all risks faced by a firm
3
Q
Where can external risk sources come from?
A
Global Economy
Politics
Competition
Environment
Cyber
4
Q
Three main ways politics can affect risk?
A
- Change in the markets where firms invest
- Change in demand for certain products
- Changes to legislative environment
5
Q
Three main external stakeholders?
A
Parent company (if you are a subsidiary)
Institutional investors
Large customers
6
Q
What is strategic risk?
A
Risk that arises from changes in business environment or adverse business decisions.
7
Q
What are financial risks?
A
Credit, Market, Liquidity
