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

Question

BlackTom AI · Accepted Answer

To approach this question, I will evaluate what the standard four quadrants of business risk are and then check each option accordingly.
Option 1: 'Project Risk, Financial Risk, Strategic Risk, Hazard Risk' – This set includes Hazard, Financial, and Strategic risks but replaces Operational Risk with Project Risk. Since Operational Risk is a core quadrant in many risk frameworks, this option is incomplete/wrong due to the substitution.
Option 2: 'Hazard Risk, Operational Risk, Financial Risk, Strategic Risk' – This option lists Hazard, Operational, Financial, and Strategic risks, which align with the commonly taught four-quadrant model of business risk. All four categories are present and none is inappropriately replaced.
Option 3: 'Financial Risk, Operational Risk, Strategic Risk, Political Risk' – While this includes three of the expected categories (Financial, Operational, Strategic), it replaces Hazard Risk with Political Risk. Political Risk is not typically grouped as one of the standard four core quadrants in mainstream business-risk frameworks, making this option incorrect.
Option 4: 'Project Risk, Financial Risk, Strategic Risk, Reputational Risk' – This set includes Financial and Strategic risks but replaces Hazard and Operational risks with Project and Reputational risks. This diverges from the standard four-quadrant model, so it is not correct.
In summary, Option 2 is the only choice that correctly identifies the conventional four quadrants without substitutions or omissions, whereas the other options each misrepresent the standard set by substituting or omitting one of the core categories.

CVEN30008_2025_SM1 Module 2.1 Quiz

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

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