What Is the Difference Between Risk Perception and Risk Assessment

question 6

Multiple Choice

What is the difference between risk perception and risk assessment?

• A) Risk perception refers to the risks we know about while risk assessment involves making guesses about what may become a risk.
• B) Risk perception refers to the worst case scenario possibilities of a risk and risk assessment refers to steps we will take to mitigate risk through assessing it.
• C) Risk perception refers to the feelings individuals hold as to their own personal safety while risk assessment involves the use of quantitative analysis of actual risks from disasters or crisis.
• D) Risk perception refers to the global perspective of a risk while risk assessment refers to the positive and negative consequences of a risk.

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Definitions:

Book Value Per Share

A financial measure used to assess the per-share value of a company based on its equity available to common shareholders, divided by the number of outstanding shares.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, representing the company's profitability over a specified period.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in the company.