risk and uncertainty Flashcards
1
Q
what factors of uncertainty should a business consider and anticipate?
A
political uncertainty - taxation / interest rates
economic uncertainty - recession / inflation
weather uncertainty - snowing / natural disasters.
2
Q
what is uncertainty?
A
the inability to calculate costs and benefits of a decision precisely.
3
Q
what is risk?
A
the possibility of a negative / adverse occurrence
4
Q
what is quantifiable risk?
A
risk that can be calculated - you can put a value on the likelihood of it occurring.
5
Q
unquantifiable risk?
A
the risk of an event that is unexpected
