In general there are two primary issues involved in risk. What are these two issues?
A) Validation of spreadsheet model and setting up for the simulation.
B) Uncertainty of the outcome and magnitude of the potential loss.
C) Maximum amount of profit made and the probability of a maximum profit.
D) Maximum amount of loss incurred and the likelihood of that loss.

Question

Quizplus · Accepted Answer

The two primary issues involved in risk are the uncertainty of the outcome and the magnitude of potential loss. Validating a spreadsheet model and setting up for a simulation are important steps in managing risk, but they are not the primary issues involved in risk. Similarly, while profit and loss are important considerations in risk, the maximum amount of profit made and the probability of that profit are not the primary issues involved. The primary concern in risk management is minimizing the potential for significant losses.

In General There Are Two Primary Issues Involved in Risk