Assume that new regulations proposed by the government could change the way a business does its day to day activities in order to be compliant with the new regulations. In this context, the business is potentially exposed to which of the following risks ?

Question

BlackTom AI · Accepted Answer

When a government introduces new regulations that could alter how a business operates on a day-to-day basis, multiple facets of risk can be affected.
Option 1: Legal risk. Changes in regulation can create new legal responsibilities or potential liabilities if the business fails to comply, so assessing legal exposure is essential.
Option 2: Operational risk. Day-to-day activities may need to be redesigned to meet the new rules, introducing risks related to processes, systems, and human execution.
Option 3: Compliance risk. The core purpose of regulations is to ensure adherence to rules; failing to implement required controls or reporting could lead to compliance failures.
Option 4: All of the above. Since regulatory changes can simultaneously impact legal obligations, operational processes, and formal compliance requirements, the combined risk is not limited to a single category.
Thus, each of the individual risk categories presents a potential concern, and taken together they describe the full spectrum of exposure a business could face under new regulations.

CVEN30008_2025_SM1 Module 2.1 Quiz

Assume that new regulations proposed by the government could change the way a business does its day to day activities in order to be compliant with the new regulations. In this context, the business is potentially exposed to which of the following risks ?

View Explanation

Log in for full answers

Similar Questions

question #2 Changes to devices used to access Google’s products and services represents one of the business risks for Google. True or false?

Which of the following are the four quadrants of business risk ?

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler