The 4T of the Risk Matrix in Financial Process Discussion
Focus on the Risk Matrix in Table 15.1 on page 176 and Figure 15.1 on page 177. Based on your experience or on a risk issue you find in an external source (literature article, news event, website for example) give one example of a risk for each “T” in Table 15.1 and justify why you would select that “T” to manage a specific risk taking into consideration the impact and likelihood of each risk. So, you will identify one risk that you will transfer, another that you will terminate, etc. Each risk can focus on different situations, or you may be able to use one or more risk situation for all 4 Ts. For example: A flood in a grocery store may have certain risks, while a fire in a day care center may be associated with other types of risk.