Three different definitions of risk
Instructions:
Report style
The answers are to exercise that are expected to evidence the sourcing of relevant reference material, critically analysing the key concepts of the reference and then applying the material to the tasks listed below. It requires the use of appropriate references to support your work. The use of references that provide generic information without any critical analysis will be viewed unfavourably.
You may use any clear and open style font, between 10-12 point size with single or 1.5 spacing.
Requirements
Submit your work in a Microsoft Word format. (NOT ALLOWED PDF)
Referencing skills
- The application of APA referencing
Recommended reading / resources
Additional relevant readings are provided in complete form within the subject material. Supplementary readings may also be referred to in the proposed forum discussions and will be posted on the Subject Interact site when appropriate.
Suggested additional readings include:
– Bach, J. (1994). Jonathan Livingston Seagull. London: Harper Collins.
– Bennett, R. (2004). The Australian stock market: A guide for players, planners and
procrastinators (8th ed.). Sydney: ABC Books.
– Bernstein, P. L. (1996). Against the Gods; the remarkable story of risk. New York: John
Wiley and Sons.
– Caplan, D. L. (1995). The new options advantage: gaining a trading edge over the markets.
(rev.ed.). New York: McGraw-Hill.
– Hardaker, J. B., Huirne, R. B. M., & Anderson, J. R. (1997). Coping with risk in agriculture.
New York: CAB International.
– Krause, M. (1995). Rural property planning: Risk management. Inkata Press (Butterworth-
Heinemann).
– Rejda, G. (1998). Principles of risk management and insurance (6th ed.). Reading Mass:
Addison Wesley Longman.
– Wilson, J., & Keating, B. (2002). Business forecasting. (4th ed.). New York: McGraw Hill.
– Winston, W. (1998). Financial models using simulation and optimisatio. New York: Palisade,
Newfield.
– ASX. Understanding warrants, an explanatory booklet. ASX Derivatives Division Sydney.
Retrieved from http://www.asx.com.au
– ASX. Understanding options trading, an explanatory booklet. ASX Derivatives Division.
Retrieved from http://www.asx.com.au
– ASX. Getting started in options, an explanatory booklet. ASX Derivatives Division. Retrieved
-knight 1921
– AS/NZ ISO 31000:2009 Risk management principles and guidelines.
Question 1 – (2150 Words)
- Compare and contrast at least three different definitions of risk. Draw some conclusions about the meaning of risk by proposing your own definition of ‘risk’.
(25 % marksfor question 1)
- Analyse how business risk differs from risk in general. Evaluate the components of business risk. Using various academic/theoretical viewpoints argue and justify a case for (or against) any one individual component having a higher priority over one or more components.
(25 % marks for question 1)
- Explain decision making heuristics, bias and risk preference. Assess how the existence of decision making heuristics, bias and risk preference impacts the analysis and management of risk.
(50 % of marks for question 1)
This question is designed to develop your understanding of the key concepts of risk. Requires you to generate a discussion about the key concepts of risk, the types of risk, the link between risk and uncertainty, the link between risk and change, and the impact of human emotion on risk.
The Questions are an exercise that are expected to evidence the sourcing of relevant reference material, critically analysing the key concepts of the reference and then applying the material to the tasks listed below. It requires the use of appropriate references to support your work. The use of references that provide generic information without any critical analysis will be viewed unfavourably.
