Advanced Flashcards

Which of these dangers would financial risk management not include?

Answer: Health risk

The goal of risk management in the healthcare industry is to identify, monitor, assess, minimize, and prevent hazards to patients. It entails a complex network of clinical and administrative systems, processes, procedures, and reporting frameworks.

Which of these companies doesn't have a financial risk manager?

Answer: Food conservation companies

Food conservation companies primarily focus on preserving and packaging food products, and their risk management efforts may primarily revolve around ensuring food safety, compliance with regulations, and maintaining product quality. While financial risks are a crucial aspect of overall risk management, smaller companies might handle financial risk management through the roles of the finance team, CFO, or senior management, rather than having a dedicated financial risk manager.

Which of these does not justify implementing the Basel Accords?

Answer: Management of human error

By ensuring that personnel have clear instructions on how to carry out their responsibilities and that they fully comprehend what is expected of them, you can manage human error in the workplace. Only those personnel who have the necessary aptitude and experience should be given tasks.

What of the following has nothing to do with financial risk management?

Answer: Taxation

Taxation is the process of obtaining financial contributions from citizens based on their income and assets. The government is supported by tax revenue, which also enables it to provide many other services like as maintaining the military, building and maintaining roads, and funding the police and courts.

Which among these doesn't involve the use of tools?

Answer: Quantitative analysis

Using mathematical and statistical modeling, measurement, and investigation, quantitative analysis (QA) is a method for comprehending behavior. A particular reality is represented by a number by quantitative analysts.

What scientific principle favors undertaking a project if it increases shareholder value?

Answer: Finance theory

According to financial theory, an equity share's intrinsic value—the estimated discounted value of its potential return, or dividends—determines its market value.

How many different exchange risk exposures are there that financial management is concerned about?

Answer: three

Transaction exposure, translation exposure, and economic (or operating) exposure are the three main categories of foreign exchange vulnerability that businesses must deal with.