1. Which one of the following statements best describes the concept of risk in finance? A. Any factor that may lead the timing and amount of cash flows generated by a business to differ from the estimated figures, including the possibility of financial loss B. The possibility of making a financial loss in the future C. The possibility of making a financial loss in the future D. The probability of loss 2. Which of the following is not a type of market risk? A. Interest rate risk B. Foreign exchange risk C. Equity price risk D. Liquidity Risk 3. After the United Kingdom voted to leave the European Union in 2016, the British pound weakened against other currencies like the US dollar and the Chinese Yuan. Which one of the following risks best explains this observation? A. Interest rate risk B. Foreign exchange risk C. Reputation risk D. Equity risk Answer all 4. Which of the following is not an example of operational risk? A. Inadequate/malfunctioning computer systems B. Circumvention of issued regulations and guidelines C. Occurrence of a natural disaster, such as a tornado D. An increase in the price of gas 5. Which of the following best describes enterprise-wide risk management? A. Applying risk management within individual departments on a piecemeal basis B. Risk management that includes all major departments in a company C. A structured and consistent set of principles or risk management that are applied across the whole of a company D. Risk management that encompasses all business units 6. Which of the following is the correct definitio of risk management in the context of finan markets? A. The practice of creating economic value by identifying and investing in risky projects that could earn a profit B. The practice of avoiding an extremely risky financial undertaking to prevent a loss C. The practice of creating economic value by identifying and measuring risks, and formulating robust plans to address and manage these risks D. Setting risk limits beyond which an entity should not operate