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What risk mitigation framework allows scope for research and acknowledgement for risk mitigation?
Ti
How would you decide what level of risk is acceptable?
You weigh in potential gain and likely probability of gain and amount and likely probability of a potential loss. For example: 1) To bet 100$ with 51% chance of winning 200$ and 49% loosing is an acceptable risk 2) To bet 100$ with 1% chance of winning 12000$ is also an acceptable risk 3) To bet 100$ with 30% chance of winning 300$ is not an acceptable risk I understand that you question probably does not relate to money, but I think it is easier to see the point that way. In real situations you would have to estimate probabilities and compare potemtial gains and losses.
What is risk reduction?
If you plan to cross the road, your risk reduction strategy is to look both ways to check the traffic.
What is the difference between a perceived risk and an actual risk?
A perceived risk is a risk in which one thinks of that might happen before commiting an action involving that risk. An actual risk is a risk that has a better likelihood of happening. For example, getting a splinter is a perceived risk while walking barefoot. However, an actual risk is a car crash.
Is Darwin at risk from a tsunami?
no darwin is not at risk from a tsunami
Is it true that high risk investments often offer the possibility of big gains or big losses?
True
What are advantages and disadvantages of risk management?
The advantage of risk management is that it reduces the possibility large losses for a business. The disadvantage is that it can limit the amount of gains that can be acquired.
What distinguishes a risky choice from a riskless choice?
A risky choice involves uncertainty about the outcome, with both potential gains and losses. In contrast, a riskless choice guarantees a known outcome with no chance of loss.
Why do many people buy mutual funds instead of buying the stocks of individual companies?
Mutual funds are all about diversification. Any individual stock carries a risk in that losses (and gains) can fluctuate significantly. A well conceived mutual fund mitigates extreme fluctuations in value as the value of some stock losses will be offset by gains in others. Typically, mutual funds will had a level of risk assigned to them based on the composition of stocks that comprise the fund. Many investors prefer mutual funds as they are deemed to reduce risk.
When a problem is stated in a particular way either to focus on the loss or to focus on the gain it can influence the decision an individual makes in the field of psychology this is called?
This is called framing effect in psychology. It refers to how people’s decisions are influenced by how information is presented to them, whether in terms of potential gains or potential losses. People tend to be more risk-averse when options are presented in terms of potential losses, and more risk-seeking when options are presented in terms of potential gains.
What is the difference between risk retention and risk transfer?
Risk retention is when a company decides to bear the financial impact of a potential loss itself, while risk transfer involves shifting the risk to another party through insurance or other financial arrangements. Risk retention allows a company to potentially save on insurance premiums but also exposes it to higher financial losses, while risk transfer helps mitigate potential losses by passing them onto another party.
What is the risk factor if the patners share in more than you?
It depends entirely on how the agreement or contract is written. Presumably gains are apportioned by agreement. Losses will be too. By and large with a "shares" system that happens automatically.
What is it called when you are sharing financial consequences associated with risk in the industry called?
Sharing financial consequences associated with risk in the industry is called risk sharing. It is a practice where multiple parties agree to distribute or transfer the potential financial losses or gains resulting from a specific risk. This can be done through various methods, such as insurance, partnerships, or contracts.
What is the difference from Passive loss rules to at risk rules?
First and foremost, both of these terms are tax terms of art. Passive losses are "hobby losses," losses that are not derived from the main business activity. These losses are sometimes deductible. In contrast, the "at risk rules" is basically an understanding used in partnership, which states that you cannot allocated losses to someone not at risk for those losses; thus, you must allocated loss by the amount of risk, which is usually also demonstrated by gain allocation. E.g. A partnership has three partners, A, B, and C. A and B each put in 49% of the income, C puts in 2%. That year the partnership has 100 dollars in losses. The partnership cannot allocate 100% of the losses to C, because he was not "at risk" of losing that much. These rules were enacted to do away with tax shelters that throw out losses to investors.
What would best describe the insurer's liability for losses arising from military service?
The insurers's liability may be reduced or excluded. The provision on war, military and aviation risk allows the insurer to reduce or exclude liability for losses resulting from war, military or naval service, and aviation.
What does risk management directly affect?
Risk management deals with a variety risk deals with mitigating companies possible risk losses and compliance in the work place.
What are the advantages of being a penny stock trader?
The benefits of penny stock trading include a good potential, better risk to rewards ratio, and quick profits because penny stock trading allows for large gains in day or at most, weeks.
