BFF5902 Introduction to Risk Principles Seminar Week 12 – Review of Discussion Questions
2 Learning objectives This seminar contains guidance on answering the class discussion questions posed during the semester. • Relate the questions to the relevant lecture and recommended readings. This guidance is to be read in conjunction with the required material. • Be able to explain key definitions and processes in the context of AU/NZ 31000:2009. • Remember examples that you have researched yourself and learned from other group presentations or assignments.
3 Week 2 Question 1Discuss: Guidance (a)Correct. Comes from the definitions of risk and uncertainty.
4 Week 2 Question 2Critique the following statement in respect of decision tree analysis: §Define “Utility”, “Risk Aversion” and “Loss Aversion” §Discuss how might this affect management’s decision making §Explain what decision rule a risk-averse person/organisation should follow. In practice, what role does the risk management framework play in influencing business decisions? Guidance
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- definitions of risk