Page 258 - RISK Management IC 86

Risk Management

This statement is prepared by the corporate risk
manager and approved by general management. The
statement defines the scope of authority and
responsibility of the risk manager. It also points out
that all departments and all levels of management are
expected to cooperate in the performance of risk
management activities.

Q7b) Describe rule of functional management in the
areas of finance, production, materials, legal and
personnel in risk management.

Ans. Refer answer to Question No.3 May, 2005

Q8. Write short notes on :

(a) Subjective probability - Subjective Probability - Though
sometimes probabilities attached to possible outcomes
from a decision are based upon statistical observation,
this is not always possible. In these circumstances, the
tendency is usually to disregard the situation as one of
pure uncertainty.

However often subjective data is available in such a
way that some estimate of the probability can be made.

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