US CMA Part 2 · Chapter 7 · Question 1 of 15
A flood that destroys a company's main distribution center is an example of which category of risk?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Hazard risk
Explanation
Hazard risks arise from natural events, accidents and other perils such as fire, flood, theft or injury, and are often insurable. Financial risks relate to interest rates, exchange rates, credit and liquidity; strategic risks arise from business strategy and the competitive environment.
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