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Chapter 10

Risk and the risk management process

Outcome

By the end of this session you should be able to:

 define and explain risk in the context of corporate governance

 define and compare (distinguish between) strategic and operational risks

 define and explain the sources and impacts of common business risks

 describe and evaluate the nature and importance of business and financial risks

 recognise and analyse the sector- or industry-specific nature of many business
risks

 identify, and assess the impact upon, the stakeholders involved in business risk

 explain and analyse the concepts of assessing the severity and probability of risk
events

 describe and evaluate a framework for board level consideration of risk

 explain and assess the ALARP (as low as reasonably practicable) principle in
risk assessment and how this relates to severity and probability

 evaluate the difficulties of risk perception including the concepts of objective and
subjective risk perception

 explain and assess the necessity of incurring risk as part of competitively
managing a business organisation

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can
be found in Chapter 10 of your Study Text

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