Types of Risk

Descripción

Topic 2
pntalarico
Mapa Mental por pntalarico, actualizado hace más de 1 año
pntalarico
Creado por pntalarico hace más de 10 años
25
0

Resumen del Recurso

Types of Risk
  1. Financial risks
    1. Risks associated with the financial position of the firm and generally result from the concept of leverage
      1. Leverage
        1. The degree to which the business uses non-equity capital compared to equity capital
          1. Leverage = (non-equity capital) / (equity capital)
            1. Financial risk (both positive and negative) to a business increases with the use of non-equity capital
          2. Business risks
            1. Risks associated with production and marketing components of the business
              1. Market or price risks

                Nota:

                • Relates to the uncertainty in markets and prices for both inputs (purchased for the production process), and outputs (products and services for sale by the firm)
                1. Production risk

                  Nota:

                  • Is the variability inherent in the firm's production process
                  1. Technology risks

                    Nota:

                    • These relate to the uncertainty caused by rapid technological change
                    1. Human risks

                      Nota:

                      • Humans are a key source of risk.  Humans are prone to mistakes, misinterpretation, and health problems
                      • The fact that humans tend to change their goals and objectives often adds to the uncertainties facing the firm
                      1. Legal and social risks
                        1. Government policy risk

                          Nota:

                          • In addition to the monetary, fiscal and trade policies, Commonwealth and State governments have various policies - both general and industry specific
                        Mostrar resumen completo Ocultar resumen completo

                        Similar

                        Risk Management Vocabulary
                        Shannon Anderson-Rush
                        Risk management
                        Amer Zavlan
                        Gestión de Riesgos.
                        Orlando Pineda Vallar
                        Risk Management
                        TimTim
                        2.1 Business Influences and Associated Security Risks
                        DJ Perrone
                        Risk & Crisis Management
                        denni.egan
                        From Technology to Transformation – The Evolved CTO
                        Cred Force
                        Operational Risk Management Process
                        Laura Robinson
                        Psychology of Risk
                        pntalarico
                        Security+ Risk Management
                        Lyndsay Badding
                        Risk Management
                        elbruce