1.

Prioritization of risk retention measures based on a strategy

2. Process of risk Management = Establish context; identification of potential risk; Risk assessment
3. All of the ff are basic principles of risk management
4. THIN MARKET It occurs when there are relatively few shares outstanding and invest or trading is limited
5. ISO31000:2009 suggest EXCEPT Avoiding the risk by deciding start with the activity that gives rise to risk
6. RISK CONCEPTUALIZATION
7. RISK MANAGEMENT
8. GOVERNMENT COMPLIANCE
9. The focus of ISO 31000 harmonization ; ALL OF THE ABOVE ARE HARMONIZATION PROGRAMMES
10. RISK ELIMINATION
11. RISK MITIGATION
12. RISK ACCEPTANCE
13. RISK TRANSFER
14. RISK IS EQUAL TO risk of occurrence multiplied by the impact of event
15. ESTABLISHING THE CONTEXT
16. RISK ASSESSMENT
17. SOURCE ANALYSIS = identification of potential risk
18. PROBLEM ANALYSIS = is also identification of potential risk
19. ESTABLISHING THE CONTEXT = defining a framework of the activity
20. OBJECTIVE-BASED RISK = Any event that may endanger achieving an objective
21. COMMON – RISK
22. RISK CHARTING
23. TAXONOMY-BASED RISK
24. ESTABLISHING THE CONTEXT is also the identity and objectives of the stakeholder
25. SCENARIO-BASED RISK
26. LIQUIDITY RISK
27. BUSINESS RISK
28. Techniques in assessing investment alternative: PROBABILITY; SIMULATION; VALUE OF INFORMATION
29. SINGLE TOSS COIN = two events are mutually exclusive
30. The events are dependent = if one event has an effect in the other event
31. INFORMATION ECONOMIES
32. SIMULATION PROCEDURES = Validate the model; design the experiment; Conduct the simulation-evaluation
analysis; Formulate the model; Define the objectives
33. The following are the advantages of simulation Except : Cost
34. RISK = greater variability > greater risk
35. DIVERSIFICATION
36. PORTFOLIO RISK
37. Capital Asset Pricing Model (CAPM) =
38. The following are assumptions of CAPM EXCEPT: All investors can influence price
39. ALL OF THE FF ARE DISADVANTAGES OF CAPM
40. MANAGEMENT RISK 43. SENSITIVITY ANALYSIS 46.
41. DEFAULT RISK 44. CERTAINTY
42. DECISION TREE 45. UNDIVERSIFIABLE RISK