10 - Risk Management Flashcards
How is risk defined in this class?
It describes the possibility of a significant loss of a tangible or intangible part of a company.
What are the three main areas of risk according to firms?
Financial, Operational, and Strategic Risks
Give examples of financial risks
Market or credit risk
Give examples of operational risks
IT Failure, Disruption of Operations
Give examples of strategic risks
Change of customer demand, branding risk, growth risk
What is the goal of a firm in regards to risk?
To improve their corporate risk response system to render it efficient. This is achieved through financial and brand analysis.
What are some mindsets firms can have in regard to risk?
They can either reduce, transfer, avoid, or accept. These should all be done at the same time actually.
What is the trend of risk in supply chains on a global scale?
They are becoming bigger and bigger.
Why are supply chains getting riskier as they become bigger?
When a supply chain has many different elements to it, there is naturally uncertainty that comes along with it. Different locations are susceptible to risk.
