Event Risks Such as Earthquakes, Fraud and Theft

question 65

Multiple Choice

Event risks such as earthquakes, fraud and theft:

• A)do not have an impact on an FI's performance
• B)are easy to measure and to predict
• C)form a normal cost of doing business for FIs
• D)may have a significant and negative impact on an FI's performance but are difficult to measure and to predict

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Definitions:

Drilling Operations

The activities involved in creating boreholes in the earth's surface for the exploration or extraction of resources like oil and gas.

Future Investment Opportunity

Potential projects or investments that a company could undertake in the future, which are expected to generate positive returns.

Net Present Value

A financial metric that calculates the value of a projected investment's net cash flows, discounted back to their present value.

Cash Flow

A measure of the amount of cash generated and used by a company in a given period, vital for assessing the health and liquidity of a business.