Corporate Flashcards
(1 cards)
1
Q
Which of the following conditions is a necessity for defining risk in corporate settings?
Changing circumstances.
Declared organisational objectives.
Suitability for own purposes.
A
A. Change in circumstances is a source of uncertainty, which is a form of risk. “In order for a risk to materialize, an event must occur.” [Hopkin, p. 16, paragraph 3]. Without a change in circumstances, there can never be an event, and therefore no risk occurrence. If a risk can never materialize, it does not exist.
