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2. Read the text carefully once more and decide whether these statements are true or false. Reason it out. Make use of the following phrases:

There are two ways of looking at this / there can’t be two ways about it / it would be a mistake to think/ we have to bear in mind/ what commonly happens is / it’s been my observation that/ I know from personal experience/ my personal view ( understanding, standing) is… / there is no denying the fact that…

1. A credit risk is the amount of potential for default that is usual in a given debt investment or extension of credit.

2. Any transaction conducted is accompanied by a certain degree of credit risk.

3. But it isn't always necessary to asses a credit risk before completing any type of lending or investment transaction.

4. The entity that provides the loan (credit) carries the credit risk.

5. In any case a lender must know all the information regarding the ability of the borrower to repay the amount of the loan, including all finance charges and related fees.

6. With the purchase of bond issues, it is the seller who assumes a degree of credit risk.

7. As part of the transaction, the seller also anticipates some type of dividend or interest payment in exchange for the purchase of the bond.

8. If the bond issuer is not likely to be able to repay the principal or provide interest payments as outlined in the terms of the bond, the issuer is understood to be a poor credit risk.

9. Just about any type of transaction that involves the extension of credit in some form carries a very low degree of credit risk that is acceptable in any case.

10. It is important to explore all relevant factors before assuming any degree of credit risk.

1. Read the text. Say whether the statements following the text are the true (t) or false (f). Risk analysis

Risk analysis is a broad term that is used in a number of different settings. The term refers to the evaluation of the potential risk that helps at least to find ways to protect yourself while taking any kind of risk. In the business world, risk analysis is one of the primary tools used in the process of risk management. Within this setting, the business looks at how various operations, campaigns, and expansions are likely to impact the financial stability of the company.

When it comes to growing a business, risk analysis is an important part of any constructive business planning. The business assessment often includes understanding both the risks of maintaining the company in its current state as well as determining what could happen if new policies, procedures or product lines were introduced into the corporate culture. Taking the time to engage in this level of assessment helps companies to avoid making hasty decisions that may have long term repercussions that do a great deal of damage to the business.

Risk analysis is not necessarily confined to understanding the degree of financial risk involved. Both businesses and non-profit organizations often engage in risk assessment that focuses primarily on the public’s perception. Because a favourable public perception helps any organization to move closer to success, changes in marketing plans, public relations efforts, and community involvement strategies are often reviewed before their launch. The idea is to determine if there is a risk of negatively impacting the current public image of the entity. If the answer is yes, the proposed project may be retooled or abandoned altogether. If the analysis indicates an extremely low risk of damage to the public image, it is likely to move forward with few or no refinements taking place.

1. Risk analysis is quite a specific term that refers to the stability of a business risk analysing it from within.

2. Risk analysis is a broad term that is used in a number of different settings.

3. In the process of risk management risk analysis is only an additional tool for assessing the level of risk possible.

4. The financial stability of a company depends greatly on the results of the risk analysis.

5. Risk analysis is an important part of any constructive business planning.

6. The assessment of the potential risk doesn't help companies to avoid making hasty decisions.

7. To predict the consequences of the business risk, it takes a long period of time to analyze it.

8. Risk analysis is not necessarily confined to understanding the degree of financial risk involved.

9. Both businesses and non-profit organizations often engage in risk assessment that focuses primarily on the public’s perception.

10. Even if there is a risk of public neglect of a product, any organization may succeed under favorable circumstances.

ORAL PRACTICE

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