Question 1 Q.1.1 Explain the meaning of the term "risk consumerism". Q.1.2 Sipho has just started his classes on the risk management module. He was advising his friends that fundamental risks are those risks that have the possibility of either a profit or a loss. Do you agree? Explain your choice. Q.1.3 Pure risk and speculative risk are two different risk types. Do you agree? Support your answer.
Question 1
Q.1.1 Explain the meaning of the term "risk consumerism".
Q.1.2 Sipho has just started his classes on the risk management module. He was advising his friends that fundamental risks are those risks that have the possibility of either a
Do you agree? Explain your choice.
Q.1.3 Pure risk and speculative risk are two different risk types.
Do you agree? Support your answer.
Q.1.4 There are two approaches to the implementation of ERM, namely the measurement driven approach and the process-control approach.
What is the focus of the measurement driven approach in implementing ERM?
Q.1.5 Write a small paragraph on the concept of maximum foreseeable loss (MFL) and its significance in risk management.
Question 2
Q.2.1 Distinguish between the.'Maximin', 'Maximax·• and the 'Minimax regret' decision strategy.
Q.2.2 Determining the size or quantum of a possible loss provides a backdrop against which efforts to manage the risk can be measured .
: Highlight the measures used to enhance the description of possible loss more accurately.
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