Which one of the following statements is TRUE. Strategic risk is: Select one: a. undesirable and an organisation should avoid the risk b. not referred to in AS ISO 31000 c. a less significant source of value destruction than operational risks d. the risk of choosing a bad strategy and the risk of badly executing the chosen strategy
Question
Which one of the following statements is TRUE.
Strategic risk is:
Select one:
a. undesirable and an organisation should avoid the risk
b. not referred to in AS ISO 31000
c. a less significant source of value destruction than operational risks
d. the risk of choosing a bad strategy and the risk of badly executing the chosen strategy
Solution
d. the risk of choosing a bad strategy and the risk of badly executing the chosen strategy
Explanation: Strategic risk refers to the risk that arises from the fundamental decisions that shape an organization's business strategy. It includes both the risk of choosing a bad strategy and the risk of poorly executing a chosen strategy. Both can lead to significant losses and damage to the organization's reputation. Therefore, managing strategic risk is a critical aspect of an organization's overall risk management strategy.
Similar Questions
Which of the following statements best describes the ISO 31000:2018 definition of risk? Select one: a. Risk is the effect of uncertain organisational objectives. b. Risk is the probability of adverse events happening. c. None of the others. d. Risk is an uncertain consequence of an event, or an activity, on an individual's well-being.
An organisation's appetite for risk, as expressed by risk level ratings, is the same for all risks because of the way the risk criteria is designed. Select one: True False
Which one of the following lists of sources of risk best describes operational risk: Select one: a. People, processes, systems and reputation. b. People, systems, external events and processes. c. People, processes and external events. d. People, systems, IT and external events.
Question 8Which of the following statements accurately describe risk? Select all that apply.1 pointA high-risk asset is any information protected by regulations or laws.If compromised, a medium-risk asset may cause some damage to an organization's ongoing operations.If compromised, a low-risk asset would have a severe negative impact on an organization’s ongoing reputation.Another way to think of risk is the likelihood of a threat occurring.
Which of the following is NOT a type of risk associated with innovation proposals? A. Tactical B. Ethical C. Financial D. Operational
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.