In this file of FIN 415 Final Exam you will find the next information:

Section 1

1. The art of risk management is to identify risks specific to an organization and to respond to them in an appropriate way.

2. All levels of an organization do not need to be included in the management of risk in order for it to be effective.

3. Qualitative Risk Analysis Techniques seek to compare the relative significance of risk facing a project in terms of the effect of their occurrence on the project outcome.

4. Quantitative techniques are used when the likehood of the investment or project achieving its objectives with time and budget is required.

5. A forward exchange contract requires delivery at a specified future date of one currency for a specific amount of another currency.

6. Risk tolerance is the degree that one is willing to risk losing some of his original investment in exchange for a chance to earn a higher return.

Section 2

Our new start up company has created a new product that we think we do a fantastic job, but our job as risk managers is to calculate what could happen if things do not work out. What is the expected value of profits in the following scenario:

Section 3

1. Which of the following best describes risk management?

a. A formal process to identify risks.

b. A formal process to assess, identify and manage risk.

c. A formal process to cover up mis-management.

d. A formal process by the Board to direct operating activities.

e. None of the above.

2. Which of the following are soft benefits of risk management?

a. Enhancement of team spirit.

b. Proper risk allocation.

c. Improved Communications.

d. Improved Profits.

e. a and c.

3. What is the Delphi technique?

a. Consu