Question

Why can it be difficult for an organisation to categorise risks? Audit and compliance functions must always categorise risks differently. Risk categories are always applied differently across an organisation. There is no universally accepted definition of individual risks. Universal risk categorisations must always be used.

Answer 1

ANSWER

Audit and compliance functions must always categorise risks differently. Risk categories are always applied differently across an organisation. There is no universally accepted definition of individual risks. Universal risk categorisations must always be used.

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Answer 2

Answer:

Risk categories are usually used differently in different parts of a company. Individual hazards do not have a broadly acknowledged definition.

Explanation:

• Incorporating all hazards into a risk measurement system, according to Stulz, is either impossible or prohibitively expensive. This is because no one can precisely anticipate what will happen in the future.
• Top management and the board of directors receive information on the firm's risk posture from risk managers. Risks must always be classified differently by audit and compliance functions.

• As a result, a risk is classified as having an effect, but an uncertainty may or may not have an effect. As a result, the most complete term is uncertainty.
• Risk in the workplace. Internal concerns that emerge in a business are referred to as business risk.

• Risk on a strategic level. External influences that can have a negative or beneficial impact on your firm are referred to as strategic risk.

• Hazardous Situation. The majority of people's risk perception is based on Hazard Risk.

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