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The work of the internal audit activity includes evaluating and contributing to the improvement of risk management systems. Risk is

A. The negative effect of events certain to occur

B. Measured in terms of impact

C.. Measured in terms of likelihood

D. Both A&B

E.Both  B&c

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Question added by MUHAMMED HARIS MI , Senior Audit Staff , Saud Bahwan Group LLC.
Date Posted: 2015/04/10
Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

E is the correct  answer ....

Nancy Refai
by Nancy Refai , Health, safety and environmental management Trainer and consultant , Freelancer

Both B &C; Risk = Impact * Likelihood 

A is wrong because Risk is not only possible events with negative outcomes it also includes events with positive /uncertain outcomes.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

The chance that an investment's actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment. A high standard deviation indicates a high degree of risk.Many companies now allocate large amounts of money and time in developing risk management strategies to help manage risks associated with their business and investment dealings. A key component of the risk mangement process is risk assessment, which involves the determination of the risks surrounding a business or investment.

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

e

Measured in terms of impact

Measured in terms of likelihood

 

Sheila Marie Laurencio
by Sheila Marie Laurencio , Procurement Secretary , Reliance Electromechanical Plumbing and Contracting Co. LLC

D- both A & B they are those activity that might be able to have negative impact to the financial activity of the company in the near future

.

Almutaz Bakry Sidahmed
by Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate

The answer is (E) risk is an event that may occur and have an impact on the acheivement of the company obectives, risk is measured in terms of impact and likelihood.

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , Warehouse Supervisor , AL MUTLAQ FURNITURE MFG

Agree with experts answer <<<<<<<<<<<<<<<<<<<<<<<<<

Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

E------------------------------------b&c

Jawad Sikandar
by Jawad Sikandar , Accounting Specialist , Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

A. The negative effect of events certain to occur

cherry ann pinpin
by cherry ann pinpin , Admin Secretary cum receptionist , Fair Deal Real Estate Brokers

The correct answer is letter A

Iftikhar Hussain Shah
by Iftikhar Hussain Shah , Senior Manager Audit & Assurance , Deloitte LLP

Option E is correct. Risk is measured in terms of its impact and likelihood.

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