Process and Types Flashcards
How many steps there are in the Risk Process?
6
What are the Risk Process steps?
- Identify
- Measure
- Own
- Address
- Implement Solutions
- Monitor
Is the Risk Process unstructured?
No
How can you Address Risk?
- Doing nothing
- Insurance
- Financial Instruments
- Change model
What is the last step of the Risk Process?
Monitor
Why we have to monitor the Risk Process?
In case the business will change
What are the Corporate Risk groups?
Financial and Non Financial
How many Non Financial risks?
4
What are the Non Financial Risks?
- Operational
- Strategic
- Reputation
- Legal/Regulation
Disruption is part of what Non Financial risk?
Strategic
What are the Operational risks?
- Dily Ops
- Control/Check
- Leadership
- Incompetence
What are the Strategic risks?
- No investments
- Poor choices
- Bad timing
- Disruptive changes
What are the Reputation risks?
- CEO integrity
- Product quality
- Employee behavior
What are the Legal/Regulations risks?
- Subsidy
- Environmental laws
- Lobby
- Monopoly
What are the Financial Risks?
- Business
- Market
- Credit
- Liquidity
- Counterparty
What are the Market risks?
- Interest Rates
- Exchange Rates
- Commodity Price
What is a Counterparty risk?
Default of other party involved in business
How can I protect myself from Financial Market risks?
by Hedging
How many Risk Types we have and what they are?
Direct and Indirect
What is the difference between Direct and Indirect risks?
Direct risks are well known, Indirect risks are out of routine.
