One of the speculative financial risks considered in an enterprise risk management program is the risk of loss because of adverse changes in commodity prices,interest rates,foreign exchange rates,and the value of money.This risk is called
A)property risk.
B)financial risk.
C)strategic risk.
D)operational risk.

Question

Quizplus · Accepted Answer

The risk of loss due to adverse changes in commodity prices, interest rates, foreign exchange rates, and the value of money is a financial risk. Financial risks can arise from market fluctuations, credit defaults, counterparty risks, and other financial factors that affect the performance of an organization's financial instruments or investments. Enterprise risk management programs typically include strategies and measures to mitigate financial risks and protect the financial health and stability of the organization. Property risk pertains to the risk of loss or damage to physical assets such as buildings, equipment, and inventory. Strategic risk pertains to the risk of loss or damage to an organization's reputation or competitive position. Operational risk pertains to the risk of loss or damage resulting from operational failures, process errors, or human error.

One of the Speculative Financial Risks Considered in an Enterprise