In a Bureaucratic Organization

question 93

Multiple Choice

In a bureaucratic organization

• A) departments communicate with each other on a regular basis.
• B) employees follow strict rules and regulations.
• C) customer satisfaction is the number one priority.
• D) first-line workers are empowered to respond to the needs of customers.

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Definitions:

Tail Risk

Risk of extreme events in the far tail of the probability distribution.

Worst-case Scenario

A situation where the most unfavorable conditions lead to the worst possible outcome for a project or investment.

Downside Exposure

The potential loss in value of an investment due to market declines, highlighting the risk in bearish scenarios.

VaR (Value At Risk)

A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame.