Management"s geographic location is far from the source of the information needed to make effective decisions. Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently? As such, it is common for businesses to identify risks on a regular basis in order to find ways to avoid or reduce future losses.. People tend to step up to the plate (are altruistic) in times of emergency. Seniors have a higher chance of falling if they have decreased balance or problems walking, and falls can cause injuries such as bone fractures and head injuries. The more fall risk factors you have, the higher your chance of falling, says the National Institute on Aging . Start studying Chapter 2: Nature of Insurance. The ideal political climate for a multinational firm is: a country with a stable and friendly government. The degree of risk is minimal. FRM Exam gaining huge recognition among financial experts across the globe. In the BP case discussed in class, we identified some overriding themes. A. A) Market, Business, Purchasing Power B) Interest Rate, Liquidity, Purchasing Power C) Purchasing Power, Exchange Rate, Interest Rate D) Exchange Rate, Marketability, Reinvestment Rate Financial risk relates to how a company uses its financial leverage and manages its debt load. Following are a few risk management methods you can use to help during the analysis phase of the risk management process. Detection risk. Risk definition is - possibility of loss or injury : peril. What is the number one killer of elderly? The Nigerian government has found that this is the handiest and quickest means of finding operating funds. Which phase of demographic transition is characterized by high birth and death rates? With respect to political risk that can be faced by a company seeking to invest abroad, which of the following is most severe? With which of the following would the phrase "Buy American" be most closely associated? The reading on behavioral analytics discussed the possibility of fraud can be within which of the following categories? This approach promotes a subjective understanding of risk ensuring flexibility. Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high? The implies that there is severe application of ________. Decisions have an effect as well. Which category probably faces the largest financial impact from premature death? How to use risk in a sentence. 30. Which of the following is not one of those principles? If there is a substantial amount of capital leaving a country, which of the following is the country likely to implement to control the situation? What is the fourth step in the Hyogo framework? Which of the following agencies underwrites trade and investments for U.S. firms? Which of the following isn't a reason that poorer nations are worse off with regard to natural disasters? The action taken following a … Risk can be minimized, but cannot be eliminated. The dictionary defines “root cause” as the fundamental cause, basis, or essence of something, or the source from which something derives. In which age category do you face the highest risk of premature death? The ancient Greeks conceived three fundamental forms of government. 21. Which of the following is an instance of how nationalism can be manifested? Licensing The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is: RCA is based on the basic idea that effective management requires … Brian is engaged in: In terms of political risk, which of the following poses the greatest threat to international marketers? Learn vocabulary, terms, and more with flashcards, games, and other study tools. Texas must be classified as a ______ risk when used as a means of controlling foreign investments. b. 1 See answer siddharthsingh8424 is waiting for your help. Risks surround everything that a business big or small does. Australia continues to The financial consequences of property risks include: reduction in property value and increases in expenses. a. Following are cited some popular definition of the term business risk: (1) “Risk is the chance of loss. Country risk - overall statement The Liberal-National coalition returned to government following the July 2016 election, but the government's slim majority and factional in-fighting raises policy instability risks. Which of the following states would not be included in the NEW tornado alley? What requirements must be met for the World Health Organization (WHO) to label a disease outbreak a pandemic? This approach eliminates all costs of decisions entirely. Accelerate the development of an economy. Relations between governments and MNCs are generally positive if the investment: brings capital, technology, and/or skills. Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Question: Which Of The Following Reflect Systematic Risk? A call to "buy our country's products only" is one form of manifestation of national feelings. An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _______. 1) Which stage of the issue management (IM) process is characterized by the following scenario: A new bullet-proof vest fails a ballistics test when exposed to high heat conditions for long periods of time. Which of the following is not considered a cause of information risk? It is the possibility of some un-favourable occurrence. Control risk. All investments have an element of risk. Nowadays, countries often require companies to become domesticated as a condition for investment. Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue? Sex differences in the 1-year risk of dying following all-cause and cause-specific hospital admission after age 50 in comparison with a general and non-hospitalised population: a register-based cohort study of the Danish population. What type of relationship is typical between worker productivity and age? Critics of BP's approach to rebrand asked how an oil company could be which of the following? Which of the following do I not consider to be its own category of organizational risk? The number of people 80+ will double in 12 years (by 2025). The evaluation of a company's contribution to the nation's interest. If Congress lowered corporate tax rates while other things were held constant, and if the Modigliani-Miller tax-adjusted theory of capital structure were correct, this would tend to cause corporations to decrease their use of debt. OSHA focuses on personnel safety while process safety focuses on the prevention of which of the following? Juliet is concerned with the potential for political harassment when her company enters a new international market. Risk Probability and Impact Matrix This is a tool that can be used to do a qualitative risk assessment. Root cause analysis defined Root cause analysis (RCA) is a systematic process for identifying “root causes” of problems or events and an approach for responding to them. b. Which of the following political risk actions is Mr. Travis' company facing in Chile? Which of the following is more likely to be subjected to price control? Which of the following is true of domestication? This is the reason behind the Financial Risk Manager FRM Exam gaining huge recognition among financial experts across the globe. In thailand, it is required that any milk products sold in the country must contain at least 50 percent milk from Thai dairy farmers. b. Additionally, starting next year fifty percent of the board of directors of the Chilean operation of the company must be Chileans. In many of the articles you will read regarding an aging population, what color is associated with the aging population? The United States required that 50% of all parts used in an automobile constructed in the US must contain parts that were manufactured in the US. But, what actually is risk? Physical inactivity can have serious implications for people’s health, said the World Health Organization today on the occasion of World Health Day. The U.S. can expect to become more influential because of the aging population. C) … Strategy must incorporate which of the following? ANSWER: C 22. Noun I prefer not to expose my money to too much risk. Which of the following is a common term for a form of government in use today? [1] [2] [3] For example, a company may face different risks in production, risks due to irregular supply of raw materials , machinery breakdown, labor unrest, etc. Which of the following are elements of a loss exposure: All of the above are elements of a loss exposure. Degree of risk depends mainly upon the nature and size of business: For small scale business it is less and for large scale business it is more. The International Trade Administration (ITA). Which of the following is an NGO (nongovernmental organization) group? d. Control risk. The seizing of a company's assets without payment is called: When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government is following a process called: When does an expropriation investment become a government-run entity? Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high? Which of the following statements is CORRECT? The economic risk in discussion here is: Price controls are used during inflationary periods to: In North Korea, foreign investors or producers are required to sell products at prices stated by the North Korean government rather than letting market value and demand, determine the prices. -B.O.Wheeler. In ________, police and military are not allowed to vote. Which of the following countries is the only country to preclude women from voting and appears to be still completely in the dark ages with regard to suffrage? Which among the following is an example of"Natural cause of business risk" ? Harf proposes that the WHO should contain or delay the spread of the source of disease in regard to antiviral drugs. stability of prevailing government policies. Account risk. Which of the following is true of a sovereign state? Which of the following government forms is ruled by a few? Which of the following terms best describes a rare, unexpected event (e.g., the discovery of alien life on Mars)? 79. Which of the following could favor a positive relation with the host country? (I) Early Adoption of which of the following ethical approaches is most likely to cause a company to use tools such as cost-benefit analysis and risk assessment to weigh all of the social benefits and costs of a business action? According to ancient Greeks which of the following refers to a fundamental government form ruled by many? According to the reading on behavioral analytics, what percentage of business loss can be attributed to operational risk? Which of the following are objectives for opportunities to intervene. Since the government of Nigeria is strapped for cash, it has decided to tax all foreign investments (such as oil production equipment) by up to forty percent of the appraised value. A business risk is the potential for losses related to a business. Analyze and evaluate the risk associated with that hazard (risk analysis, and risk evaluation). Risk is all around us - whether you're operating a company or investing in the stock market. Approximately 2 million deaths per year are attributed to physical inactivity, prompting WHO to issue a warning that a sedentary lifestyle could very well be among the 10 leading causes of death and disability in the world. Risk reduction is a proactive method of addressing potential process failure through redesign, incorporation of safety features or instruction whose end result is risk reduction to the patient. Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened? Political sanctions are generally not very successful. A. communinty-level outbreaks of a disease are occuring in more than one country in a WHO region and one additional country in a different WHO region. A change in the personal tax rate should not affect firms' capital structure decisions. And what are the many types and examples of risk? Business risk can encompass which of the following? Which of the following refers to a government ruled by one? Another name for "great" natural disasters is? Since the vests will be used in extreme weather conditions, it is determined that the program will fail if the issue is not resolved and no further action is taken. Meteroa Inc. using their manufacturing unit as an export base. Because risk isn't evenly distributed, which types of countries have the largest exposure (as a percentage of GDP) to natural disasters? Business activity is an activity which is an engaged in primary purpose of making a profit, salary and wages are expenses to a business. An insurer has a contractual agreement which transfers a portion of its risk exposure to another insurer. ________ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees by mandating local ownership and greater national involvement in a company's management. If women only have two children, what will our population do by 2050? Kelly writes that boarder screening may have led to delays of how many days in the establishment of local transmission? c. Substantive risk. all of the above Critics of BP's approach to rebrand asked how an oil company could be which of the following? Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. Stopping or refusing to trade with another nation for political reasons is called: Which of the following statements is true of political sanctions? Which of the following are not discussed? Determine appropriate ways to eliminate the hazard, or control the risk when the hazard cannot be eliminated (risk … B. The risk of a material misstatement occurring in an account, assuming an absence of internal control, is referred to as: A. Which of the following is NOT a difference between a natural disaster and a great natural disaster? _______ stem from shortages of foreign currency held by a country. Add your answer and earn points. Which of the following is the most important reason to encourage foreign investment? ________ refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members. The people, processes, and systems in place to produce the company's product/service describes which of the following risk categories? Which of the following is an example of a hazard risk? loss of some degree of national sovereignty. Which of the following represents a new and powerful tool of PSAs? As stated in ICH Q9, risk reduction might 100. Which of the following is a political cause of instability in international markets? Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government? In the context of international law, a ______ state is independent and free from all external control. Rather than developing a strategy, firms should strive to develop which of the following? Hence it is not a primary business activity.Which of the following statement is FALSE? The possibility of the government actually failing. "Slammer," "Melissa", and "Goner worm" are all examples of: Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. EG Test Insurance.doc 4 28) The extra expense incurred by a business to stay in operation following a fire is an example of a(n) A) fundamental risk B) speculative risk. Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace? It is illegal for a U.S. citizen to pay a bribe. To reduce the risk of political harassment, she will consider using _______ to enter the market. The presence of more than one ethnic nationality B. Infrequent changes in government and government policy C. Low inflation rate D. Low level of government debt E. High living standards 101. Risk can be minimized, but cannot be eliminated. _______ is an intense feeling of state pride, unity, and an awakening of a country's people to pride in their country. Which of the following was not identified as a primary cause of BP's March 2005 accident? Business risk can encompass which of the following? c."Business risk" is differentiated from "financial risk" by the fact that financial risk reflects only the use of debt, while business risk reflects both the use of debt and such factors as sales variability, cost variability, and operating a. Which category would this error fit under? Which of the following is the principal U.S. agency that supports U.S. business abroad? Nature of Business Risk Business risk is the possibilities a company will have lower than anticipated profits or experience a loss rather than taking a profit.. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, and the overall economic climate and government regulations. We've defined hazard as the potential to cause harm; risk, on the other hand, is the likelihood of harm (in defined circumstances, and usually qualified by … Audit risk consists of all but the following components: a. Question 81 Which of the following outcomes is one of the benefits of a risk-management approach to security policies? Monarchy, like ________, is a form of government ruled by one. Inherent risk. Which of the following is a strategy that multinational corporations use to minimize political vulnerability and risk? Business risk implies uncertainty in profits or danger of loss and the events that could pose a risk due to some unforeseen events in future, which causes business to fail. Significant unexpected fluctuations identified by analytical procedures will a. 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