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6 Cards in this Set
- Front
- Back
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2 elements of risk
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uncertainty of outcomes
- type/time possibility of neg outcome - at least 1 potential outcome is negative = loss/reduction |
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possibility
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event may occur.
does not quantify risk only verifies risk is present |
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probability
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likeliehood of an outcome. quantifies risk
measureable |
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sub v. objective risk
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- familiarity/control
-severity over freq |
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operational risk
strategic risk |
pure risk that falls outside traditional risk hazard and could jeopardize SERVICE/MFG related biz functions
Strategtic: influence CURRENT or FUTURE effect on EARNINGS based on biz decision, improper implementation |
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financial consequence of risk
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1. expected cost of losses/gains
2. expenditured on risk management 3. cost of residual uncertainty |
