Module 14 Worksheet assignment

RISK MANAGEMENT
Instructions
 Compete the following worksheet on the word document.
 Once completed save the word document as a pdf.
 Submit the worksheet on Moodle.

Worksheet: Complete the worksheet

Question 1: Introduction to Risk (Lesson 1)

1.1 Differentiate between Risk Profile and Risk Culture. (4)

Risk Profile:

 Focuses on quantitative aspects.

 Measures and quantifies risks.
 Provides a numerical view of an entity's risk exposure.

Risk Culture:

 Focuses on qualitative and behavioral aspects.

 Shapes the collective mindset and behaviors related to risk.
 Difficult to quantify; assessed through surveys and observations.

Question 2 :Types of Risk (Lesson 2)

2.1 Explain each concept relating types of risk, and give ONE example of
each.
2.1.1 Operational Risk (2)

Operational risk is the possibility of damage or disruption brought on by inadequate or unsuccessful

internal procedures, systems, personnel, or outside circumstances. It includes risks connected to regular
business operations inside an organization.
An example of an operational risk is when a bank's computer system goes down,
preventing customers from accessing their online accounts and making
purchases. Normal banking operations are disrupted by this interruption, which
could result in financial losses and unhappy customers.

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2.1.2 Country Risk (2)

Country risk, also known as political risk or sovereign risk, is the possibility that a country's economic,
political, and social developments will have a negative impact on the financial stability or business
operations of firms that operate in that nation.
Consider a multinational firm that makes significant investments in a foreign
nation. The operations and financial performance of the firm may be negatively
impacted if there is a rapid change in government policy or there is political
instability in that nation. Country risk can be seen in this situation.

Question 3: Risk Management (Lesson 3)

3.1 Evaluate each subtasks in detail that needs to be conducted as part of the Risk
Assessment, Step 1 of Risk Management. (9)

Establish Risk Context

Risk Identification
Risk Analysis
Risk Prioritization
Data Collection
Risk Assessment Methodology

© Material designed by Curro Digital Learning. No part of it can be used without the express written permission of the author.