One Common Mistake Made Early in the Risk Identification Process

question 48

Multiple Choice

One common mistake made early in the risk identification process is to

• A)Not all possibilities are considered
• B)Participants are over-optimistic
• C)Participants are over-pessimistic
• D)Focus on objectives and not on the events that could produce consequences.
• E)Too much attention is given to past events

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Definitions:

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that lenders charge borrowers.

Classical Economists

Economists from the 18th and 19th centuries who believed in self-regulating markets and emphasized the importance of supply in determining economic value.

Money

A medium of exchange that facilitates trade, and is widely accepted in payment for goods and services and repayment of debts.

Savings

The portion of income not spent on consumption, often set aside for future use or investment.