A risk exposure is defined as the impact to the organization when a situation transpires. The widely accepted formula for calculating exposure is as follows: Risk exposure = the event will occur + if the event occurs where, outcome likelihood, impact how, impact likelihood, cost

Likelihood, impact

Explanation:

Risk exposure is defined as an estimation of future loss that can be experienced when a particular line of action is taken. There is ranking of risks according to the likelihood of them occuring multiplied by potential loss if the risk occurs.

The formula for risk exposure is the likelihood that an event will occur plus impact if the event occurs.

For example if an investor invests $1,000 in a high risk investment, he stand s the chance of losing the whole of the capital invested.

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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