About This Chapter
Enterprise-Level Risk - Chapter Summary
In risk management, it's important to understand the elements of enterprise-level risk. This chapter offers a handful of engaging and informative lessons that define and illustrate the different forms of enterprise-level risk. Progress through the chapter to study the applications of enterprise risk, operational risk, exchange rate risk, and credit risk. To make sure you understand these concepts, we've included lesson quizzes and a chapter exam. You can revisit the lessons as many times as needed, and the Ask the Expert feature lets you submit any questions you may have about these enterprise-level risk topics. The chapter is also available to study any time that fits your schedule. When you're finished with the chapter's resources, you should be able to:
- Discuss types of enterprise risks
- Evaluate examples of operational risk
- Recognize forms of exchange rate risk
1. Enterprise Risk: Types & Strategies
What kind of risk exposure does a business enterprise have, and what can they do to mitigate risk? In this lesson, we'll discuss types of enterprise risks, how they're measured, and what businesses can do to minimize potential harm.
2. Operational Risks: Definition & Examples
In this lesson, we'll define operational risk in more than one way. Then, we'll go over the subcategories of operational risks and provide numerous examples of each.
3. Exchange Rate Risk & Forms of Exposure
International businesses face certain risks, including the risk of exchange rates being unfavorable. In this lesson, we'll explore forms of exchange rate exposure, including short-run, long-run, and translation exposure.
4. What is Credit Risk? - Definition & Examples
When you go and buy a car or a house, companies will assess your credit risk before allowing you to make such a big purchase. Learn why and how they do this in this lesson.
5. Business Case Study: Enterprise Risk Management at Toyota
After two unexpected disasters did great damage to Toyota's reputation and finances, a renewed emphasis on risk management was put into place. Let's look at the risk management infrastructure at Toyota and how this company identifies and deals with risks.
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