Business Risk Analysis Recap

Risk management is important to increase uncertainty and fewer surprises

Market risk is the risk of monetary loss arising from an adverse move in market prices or rate

Two dimensions in measuring risk: probability and frequency

In general, we should avoid risk with low probability and low impact

KCI, KPI, and KRI are tools to conduct risk monitoring

Risks only have negative consequences and should be completely avoided

Risk identification is the first step in the risk management process after establishing the context of an organization

Transferring risk to a third party is a common risk mitigation strategy

Risk management is only important for large and complex companies

Monitoring risks is the final stage in the risk management cycle