Lucy is a risk manager working for Alex Ltd.
At the present time Lucy is investigating the potential gross risk arising from a recent decision to incorporate lower quality materials into the production process for one of the company’s key products, the Staffordshire.
In assessing potential gross risk, Lucy needs to take account of one of the following?
Select ONE answer:
- Level of exposure and probability of occurrence
- Potential loss and probability of occurrence
- Potential loss and level of volatility
- Level of exposure and level of volatility
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Notcorrect
- Correct == > Gross risk is a function of the loss or impact and its probability, before any control measures are implemented.
- Not correct
- Not correct
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