Q's From the Quiz
Strategic risk is best described as:
C. Risk caused by poor leadership or bad business decisions
This is why a business might transfer a risk.
A. They don't feel like dealing with it.
B. To make profit.
C. They are not able to afford the risk.
D. They want to do other things.
C. They are not able to afford the risk.
Which of the following is an example of "avoiding" a risk?*
B. Moving to a safer neighborhood to avoid crime
Scenario: Legal Compliance Issue
A food business is fined for not following updated health and safety regulations.
How can the business avoid this risk going forward?
A. Stay informed on regulations and offer staff compliance training
Why did the math book look sad?
Because it had too many ______.
Problems
What is a personal risk?
B. The risk of losing your job or getting injured
This is how a company can transfer the risk of product damage.
A) By buying insurance
B) By using other business members to store and distribute products
C) By ignoring the risk
D) By assuming the risk
B) By using other business members to store and distribute products
28. Which of the following is an example of a controllable risk?
B. A factory worker not wearing required safety gear
12. Scenario: Supply Chain Disruption
A company’s overseas supplier is delayed due to a natural disaster.
What can the company do to reduce this type of risk in the future?
B. Use multiple suppliers from different regions
Why did the bicycle fall over?
Because it was two- ____!
Tired
A compliance risk is associated with:
B. A failure to follow laws or regulations
A business buys this when it can predict the size of a potential loss.
A) Insurance
B) A warranty
C) A loan
D) A contract
A) Insurance
4. Which of these best illustrates an operational risk?
B. A supplier failing to deliver raw materials
Scenario: Negative Publicity
An employee’s rude behavior is caught on camera and goes viral, damaging the company’s reputation.
What should the business do to manage this reputational risk?
B. Release a public apology and provide customer service training
Why don’t skeletons fight each other?
They don’t have the _____.
Guts
26. A person who hires a contractor without proper insurance might be at risk for:
*
2/2
C. Legal liability if the contractor gets injured
This is what it means for a business to handle a risk on its own.
A) Transferring the risk
B) Ignoring the risk
C) Assuming the risk
D) Insuring the risk
C) Assuming the risk
31. Which of the following actions involves transferring risk in a business context?*
A. Signing a contract that makes a supplier responsible for shipping delays
Scenario: Market Risk
A competitor offers the same product at a much lower price, and your business begins to lose customers.
How can your business respond to this risk?
D. Improve product quality, customer service, or find a unique selling point
What kind of tree can you carry in your hand?
A ___ tree.
Palm
25. How does health insurance primarily help manage personal risk?
*
2/2
C. By reducing financial impact from medical expenses
This is why a large business might save money instead of buying insurance.
A) They believe they can afford the loss
B) They want to avoid paying extra
C) They have too much money
D) They don’t want any risk
A) They believe they can afford the loss
Which of the following makes a risk “uncontrollable”?
D. It cannot be influenced or prevented by a business or person
32. Scenario: A small business owner has invested in a retail store located in a flood-prone area. The business has been affected by minor flooding in the past but has not faced significant losses. The owner considers taking out flood insurance, but the premiums are high. The business could also relocate to a safer area, but this would involve significant costs and disruption.
What is the most practical way for the business owner to deal with the flood risk?
B. Transfer – Purchase flood insurance to transfer the financial risk.
What can’t be used until it's broken?
An ___.
Egg