You are the Chief Risk Officer for a company and you’ve been tasked with identifying the areas where your company is exposed to systematic and unsystematic risks. Respond to the following in a minimum of 175 words: Based on the information you learned this week, what approach would you take in explaining how systematic and unsystematic risks affect risk planning? Describe your approach. Name 3 or more systematic or unsystematic risks your company might face. Think of some implications if your company decides not to be proactive and plan for these risks.

You are the Chief Risk Officer for a company and you’ve been tasked with identifying the areas where your company is exposed to systematic and unsystematic risks. Respond to the following in a minimum...

You are the Chief Risk Officer for a company and you’ve been tasked with identifying the areas where your company is exposed to systematic and unsystematic risks.

Respond to the following in a minimum of 175 words:

Based on the information you learned this week, what approach would you take in explaining how systematic and unsystematic risks affect risk planning?

Describe your approach.

Name 3 or more systematic or unsystematic risks your company might face.

Think of some implications if your company decides not to be proactive and plan for these risks.

Answered Same DayMar 28, 2021

Answer To: You are the Chief Risk Officer for a company and you’ve been tasked with identifying the areas where...

Tanmoy answered on Mar 29 2021

146 Votes

Systematic & Unsystematic risk
Systematic risk is the risk which impacts the entire market segment. It is undiversifiable and is the market risk. Due to its volatility it impacts the overall industry. It is neither unpredictable nor impossible to be avoided completely. It can only be reduced by using hedging strategies and correct allocation of assets. Therefore, post risk planning; systematic risk cannot be avoided if it arises. The examples of systematic risk which impacts the stock of the company can be interest rate fluctuations, recessions, war etc. Therefore, making any changes in the portfolio positions, the investors cannot mitigate the systematic risks as above (Amy Fontinelle, 2020).
On the other hand, the unsystematic risks are risks...

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You are the Chief Risk Officer for a company and you’ve been tasked with identifying the areas where your company is exposed to systematic and unsystematic risks. Respond to the following in a minimum...

Answer To: You are the Chief Risk Officer for a company and you’ve been tasked with identifying the areas where...

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