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Dear tutor
could you please advise how we can answer business risks questions? from the past papers, I don’t know where I can start to analysing the scenario, opentuition notes are helpful with business risks explanation, but I just don’t know how to apply the thery to the exam case, when I read the question, I can’t refer back to if it’s an operation risk or stratigic risks, any suggestions please?
It can be helpful to think in terms of classifications of business risks – but this is AAA, not SBL, so you don’t have to classify/categorise. Whether something is operational or strategic can be thought of affecting the day-to-day or long-term.
For example, if staff members in operational roles can leave/have left at short notice – that may disrupt the day-to-day – but does not (usually) affect the longer term (because they can be replaced).
But if the development of a new product which is to be launched depends on the technical expertise of an individual, and that individual may leave – in an industry that depends on new products, that could be a strategic business risk. (The absence of a new product or delay may lose market share to competitors.)
See also this guidance from the examining team https://www.accaglobal.com/hk/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/exam-tech2.html
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