Chapter 17 Flashcards
1
Q
what is operational risk
A
potential loss from failed systems, employees or external events
2
Q
how to mitigate operational risk
A
internal process control, putting systems into place to prevent issues
3
Q
why is investments in technology risky
A
-high cost
-dont know if it will work, might be a waste of money
4
Q
what is economies of scale and scope within technology
A
scope= how many products you can sell to one= cost savings
scale= how much market share can you get = drives cost down the more people you get
