Question

Read the following actions and decide if they are risks or costs.

Answer 1

Answer:

Fire: risk

Employee salaries: cost

Theft: risk

Health insurance for your employees: cost

Losing important data from the computer network: risk

Taxes: cost

Employee injury: risk

Explanation:

Risk- they refer to the future uncertainty or threath of damage, injury, liability, loss or any negative thing that could happen to an investment. They are caused by external or internal vulnerabilities and can be prevented.

Cost- in economics it refers to the monetary valuation of efford, material, resources, time and utilities consumed, risk incurried and opportunities forgone in production and delivery of a good or service.

As you can see, everytime costs need to be paid in order to finish the production. Risks are considered but they do not always present.