Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Identify risk and recommendation
- This topic has 2 replies, 2 voices, and was last updated 14 hours ago by
crystal096.
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- May 16, 2025 at 8:20 am #717287
Hi Team,
My tutor recommended learning the following key risks to identify risks from a scenario:
Business / Strategic risk
? Financial risk
? Liquidity risk
? Credit risk
? Foreign exchange risk
? Interest rate risk
? Market risk
? Market-share / competitive risk
? Political risk
? Legal & compliance risk
? Environmental risk
? Reputation risk
? Health & safety risk
? Technology risk
? Operational risk
? Intellectual riskWhilst I can see that the majority of them can be identified in a scenario I am finding it slightly limiting and more challenging to answer the question. I have experience with risk management at work so naturally my head identifies some risks that do not fit those buckets.
I was just doing an exam paper and in the mark scheme can see risks such as:
-Brand new industry
-Inability to gain market share
-lack of marketing insight
-impact on current operations
-impact on brand
-ethical concernsClearly these are not worded in the way my tutor has recommended I identify the risks, and the latter approach makes my life far easier.
My question is, is there a prescribed set way on identifying risks? Do we have to identify it according to the list my tutor has strongly advised we memorise?
Your advise is much appreciate thanks so much team!
May 16, 2025 at 11:31 pm #717296The list you set out is very comprehensive, and can be a useful checklist. However ee, as the question you attempted shows, risks might not be described in ways congruent with the list.
However, you do not need to express risks using the same terms as the marking scheme.
So, investing in a brand new industry would almost certainly give rise to financial risks, market risk, legal and compliance risk, operational risk and technology risk.
Impact on brand = reputation risk
Ethical risk = legal and compliance.As well as using your list, ask yourself “What could go wrong with this project?”. That can be an effective way to identify potential risks.
May 17, 2025 at 12:50 pm #717302thanks very much really reassuring!
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