risk measurement
What risk measurement means in Business A-Level, as defined for AQA.
Definition of risk measurement
Check what you remember
Read the wording for your board, then hide it and explain risk measurement in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Margin of safety is used as the risk measure and related to how volatile demand looks in the extract.
Topics that use risk measurement
- Analysing financial performance (AQA A-Level)
Related terms
- break-even output
- cash flow forecast
- contribution per unit
- contribution squeeze
- credit terms
- data reliability
- forecast risk
- gross profit margin
Using risk measurement in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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