Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

10 Business Studies > Risk Management Function > Flashcards

Risk Management Function Flashcards

1
Q

What must business pay attention to for a competitive advantage?

A

Risk business may face

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does risk management do?

A

Identifies, assesses, controls threats as well as developing strategies on how to deal with different risks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

List possible risks

A

• Loss/damage - fire,floods,theft
• Loss of customers - changing trends, decline income, more competition
• Unforeseen circumstances
- Covid19

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why must business identify different risks?

A

Well prepared to confront and manage - cost effective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What must the owner do in order to identify risks?

A

Visualise what the future holds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How must the potential future outcomes be brainstormed?

A

Decision tree technique

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the three types of risks?

A
  1. Preventable risks
  2. Strategy risks
  3. External risks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define preventable risks

A

Controllable + avoided/managed by changing certain structures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are strategy risks?

A

Take risks by implementing a specific strategy - hope increase market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are external risks?

A

Events businesses have no control.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are external risks caused by?

A

Political decisions, economic downturns, change jn trend, pqndemics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What must be put in place for an external risk?

A

Preventative measures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define risk estimation

A

Management of business looks at the probability of certain risks occurring and the impact

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a risk profile?

A

Summary which lists all the estimates of what can go wrong, with a strategy, new product or program to mitigate it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who is a risk profile drawn up by?

A

Management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How is the risk profile summary visualised?

A

Using probability studies to show impact if unsuccessful

17
Q

What is risk culture?

A

The culture of the business which cannot be controlled

18
Q

What will the employees have in risk culture based on experience?

A

Shared behaviours, values and goals

19
Q

What does risk culture lead to?

A

Type of decision made in business
Assessment on how much of the Rick can be afforded

20
Q

Name the five types of risks

A
  1. Strategic risk
  2. Compliance risk
  3. Operational risk
  4. Financial risk
  5. Repetitional risk
21
Q

What is a strategic risk?

A

Business strategy becomes less effective and struggles to reach its goal

22
Q

What is a strategic risk caused by?

A

Technological changes, new competitor, shift in demand, spikes cost of raw materials

23
Q

What is compliance risk?

A

Failing to comply with existing regulations and new laws - expands

24
Q

What is operational risk?

A

Unexpected failure in a businesses day-to-day operations

25
Q

What does operational risk include?

A

Technical failure, people or processes

26
Q

What is financial risk?

A

Money is always flowing in and out of the business which increases the possibility of financial loss.

27
Q

What increases financial risk?

A

Short term debt

28
Q

What is a reputational risk?

A

Businesses reputation is damaged gas immediate loss of revenue – customers become wary

29
Q

What happens to the employees in terms of a reputational risk?

A

They may become demoralised and decide to leave. Finding good replacements will be difficult as no one will want to join the firm

30
Q

What will happen to suppliers and advertises in terms of a reputational risk?

A

Suppliers will get off at least favourable terms. Advertises, sponsors and other partners might decide they don’t want to be associated

31
Q

Name the five steps of the risk management process

A
  1. Risk identification
    2: risk analysis
  2. Risk assessment and evaluation
  3. Risk mitigation
  4. Risk monitoring
32
Q

What is risk identification?

A

Identify and define potential risk that may negatively impact the business

33
Q

What is risk analysis?

A

Gain insight into the possibility of the risk occurring as well as the impact

34
Q

What is risk assessment and evaluation?

A

Further evaluation to determine if the risk is likely and acceptable to the company – return potential reward

35
Q

What is risk monitoring?

A

Follow up and review the risk process. Track and existing risks

10 Business Studies (13 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions