Risk analysis Flashcards
1
Q
Different types of risk
A
- strategic
- operational
- financial
2
Q
What are strategic risks?
A
Risks associated with the long term strategic objectives of the business
3
Q
What are operational risks?
A
The risks on how the business will operate
4
Q
What are financial risks?
A
Risks to the finances of the company
5
Q
Good things to consider when talking about risk
A
Operational gearing
- proportion of fixed costs to variable
Financial gearing
- proportion of debt to equity
