Day: November 25, 2024

Which of the following is the best definition of the risk concept of ‘exposure’?

Select ONE answer:

1. How the factor to which a company is exposed is likely to alter
2. The amount of the loss if the undesired outcome occurs
3. The measure of the way in which a business is faced by risks
4. The likelihood that the undesirable outcome occurs

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Risk exposure is simply the measure of the way a business is faced by risks, whether financial, business, event etc.
4. Not correct

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