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NEW QUESTION: 1
Risks to an organization's image are referred to as what kind of risk?
A. Strategic
B. Financial
C. Information
D. Operational
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Strategic risks are those risks which have potential outcome of not fulfilling on strategic objectives of the organization as planned. Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.
Strategic risks can be broken down into external and internal risks:
External risks are those circumstances from outside the enterprise which will have a potentially

damaging or helpful impact on the enterprise. These risks include sudden change of economy, industry, or regulatory conditions. Some of the external risks are predictable while others are not. For instance, a recession may be predictable and the enterprise may be able to hedge against the dangers economically; but the total market failure may not as predictable and can be much more devastating.
Internal risks usually focus on the image or reputation of the enterprise. some of the risks that are

involved in this are public communication, trust, and strategic agreement from stakeholders and customers.

NEW QUESTION: 2
Given that the population standard deviation is 6.8, what sample size is required to be 90% confident that the estimated mean has an error less than 0.02?
A. 189,859
B. 175,987
C. 312,761
D. 152,083
Answer: C

NEW QUESTION: 3
The senior lender at ABC bank would like to make stated income mortgage loans (i.e., loans where the bank does not verify the applicant's income) to mortgage customers, including subprime borrowers. Under the statement on subprime mortgage lending, which of the following is the best statement of the bank's responsibility regarding this new program?
A. The bank should establish workout procedures for such loans in advance of making them.
B. The bank should make a policy for this program that includes mitigating factors for the risks
C. Due to the risks, it should not implement such a program for subprime borrowers
D. The bank should set stringent debt-to-income ratios for these loans
Answer: B

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