Enterprise risk
Free IMA CMA Part 2 (Strategic Financial Management) lesson in Enterprise Risk Management. 21 min read, ~3,185 words.
The five risk families are business, hazard, financial, operational, and strategic. Operational risk is people, process, systems, and external events. The five risk responses are avoid, retain, reduce (mitigate), transfer (share), and exploit (accept). Expected loss = Σ probability × loss. Unexpected loss is the volatility around it. Maximum possible...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2D1
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