Risk Mitigation and Sensitivity Analysis
What Risk Mitigation and Sensitivity Analysis means in Business A-Level, as defined for OCR.
Definition of Risk Mitigation and Sensitivity Analysis
Check what you remember
Read the wording for your board, then hide it and explain Risk Mitigation and Sensitivity Analysis in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: OCR
The use of 'what-if' scenarios within cash-flow forecasts to assess the impact of external shocks, such as interest rate hikes or supply chain disruptions, on the firm's solvency.
Topics that use Risk Mitigation and Sensitivity Analysis
- Management Accounting: Cash-flow (OCR A-Level)
Related terms
Using Risk Mitigation and Sensitivity Analysis 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.
Practise Business questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge