Examples of risk in the following topics:
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- IT risk relates to the business risk associated with the use, ownership, operation, involvement, and adoption of IT within an enterprise.
- Risk is the product of the likelihood of an occurrence times its impact (Risk = Likelihood x Impact).
- IT risk management can be viewed as a component of a wider enterprise risk management (ERM) system.
- IT risk transverses all four of the aforementioned categories and should be managed within the framework of enterprise risk management.
- Risk appetite and risk sensitivity of the whole enterprise should guide the IT risk management process.
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- Risk management (i.e. foreign exchange risks, interest rates, hedging commodities, derivatives)
- Credit Risk – Risk that a borrower may not return the entirety of the payment owed.
- Liquidity Risk – Risk that an acquired asset cannot be traded quickly enough to capture profit.
- Market Risk – Virtually any capital asset has a market, and is therefore subjected to the risks of it's respective market.
- Operational Risk – Risk that an operational issue will diminish returns.
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- Political and legal risks are two very important aspects of running a business of which an entrepreneur should be aware.
- Failure to recognize these risks and adjust accordingly could potentially hinder the performance of the overall business.
- Political risk is generally defined as the risk to business interests resulting from political instability or political change.
- Political risk exists in every country around the globe and varies in magnitude and type from country to country.
- Governments may also offer political risk insurance to promote exports or economic development.
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- The biggest challenge companies face in tackling IS security risks is the growing sophistication of hackers and other cyber-criminals.
- We discuss Internet risks in the next section.
- The risks and particular regulations that apply may vary depending on the types of services offered.
- It is clear that no single risk management strategy can completely eliminate the risks associated with Internet use and access.
- Some businesses whose products or services directly or indirectly impact the economy or the health, welfare or safety of the public have begun to use cyber risk insurance programs as a means of transferring risk and providing for business continuity.
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- Email represents a potential IT risk and entry point for hackers, and so IT teams must integrate appropriate safeguards.
- As a result, protecting the inboxes of the employees at an organization is critical to minimizing this risk.
- As the world grows more and more digitally connected, the risks will continue to elevate.
- Being aware of the risks and investing in a strong IT infrastructure is key to mitigating the potential risks.
- Understand the risks associated with organizational email systems and the tools available to offset those risks
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- Under recourse factoring, the client is not protected against the risk of bad debts.
- Counter party credit risk: risk covered debtors can be re-insured, which limit the risks of a factor.
- Trade receivables are a fairly low risk asset due to their short duration.
- A fraud insurance policy and subjecting the client to audit could limit the risks.
- Explain the business of factoring and assess the risks of the involved parties
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- Legal risk is the risk arising from failure to comply with statutory or regulatory obligations (http://www.ffiec.gov).
- In order to minimize exposure to legal risks arising from confusion and excess cost, a company should seek legal advice if possible.
- Shahira and her small business of running a sewing company faces different political and legal risk than those of a larger company, she is still liable and must understand the laws and regulations that she may face in any country.
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- To be slightly more specific, Frank Knight and Peter Drucker define entrepreneurship in terms of risk-taking.
- Risk - Measured statistically and often planned for, risks are simply the probabilities of unfavorable outcomes compared to the desired objectives.
- Ambiguity - A risk that is not measurable, ambiguity is the scenario in which objectives and relative risks are known, but not the likelihood of an outcome.
- The objective is known, but the context of risk is completely unknown.
- Any of these three risk scenarios are stressful for many people, and it it is important to understand your own risk aversion before entering into a small business ownership situation.
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- In September of 2007, a prominent group of state officials, state pension fund managers, and environmental organizations filed a petition with the Securities and Exchange Commission asking it to adopt guidelines requiring all public companies to disclose the risks of climate change to their business as well as the actions they're taking to mitigate those risks.
- The 115-page petition, signed by state treasurers, attorney generals and state fund managers in California, Florida, Maine, New York, North Carolina, Oregon and Vermont, states that ‘climate change has now become a significant factor bearing on a company's financial condition… Investors are [therefore] looking for companies that are best positioned to avoid the financial risks associated with climate change and to capitalize on the new opportunities that greenhouse gas regulation will provide. ' The petition went on to claim that ‘Interest in climate risk is not limited to investors with a specific moral or policy interest in climate change; climate change now covers an enormous range of investors whose interest is purely financial…
- How seriously companies are taking climate change into account when making strategic business decisions (particularly the physical risks that climate change imposes on a company's operations and financial condition),
- The names of companies that are ‘out front' in their response to climate risks and opportunities,
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- Credit unions pride themselves on being community-oriented, deliberately mitigating risk and serving people as opposed to pursuing profit.
- Credit unions are more vulnerable to risk, and thus may not be as willing as larger banks to lend money without confidence in repayment
- While there are many considerations to be made when deciding on a banking option, credit unions are uniquely positioned to offset the downsides of big banks through avoiding risk while focusing on local needs.
- Big banks add advantage through scale (along with risk), providing more investment opportunities and global access to capital.
- Assess the value of credit unions, particularly compared to big banks and an understanding of risk