Select Chapter 12 OR Chapter 20 and answer all of the questions listed for the chapter you selected.Length: 400-600 words totalChapter 12Do not limit your discussion of the topics to the textbook. Use outside sources for examples.Explain how Key Risk Indicators assist companies in identifying emerging risks. Select a company other than Intuit and provide examples of how KRIs would be useful.Explain how Key Performance Indicators help companies to manage existing risks. Select a company other than Intuit and identify at least three KPIs unique to their business. Explain how the KPIs can assist the company in managing risks specifically related to their company/industry.What is the effect of not measuring performance of an ERM program on the overall quality of the program?How can the Board of Directors be confident in the information reported on management’s progress in responding to significant risks?OR -Chapter 20 Implementing Risk Management within Middle Eastern Oil1. Identify and discuss at least three of the challenges the newly formed risk management team faced.2. Select one of the divisions (IT, Legal, Project Management or Environmental) and explain how that department can interact with and support the risk management team to help manage risks identified with that department.3. What were some of the challenges of the data gathering process used for the Corporate Risk Exercise used in 2010/2011?4. Using the case study information (Exhibits 20.9, 20.10, 20.11, and 20.12), provide a list of at least 10 potential corporate risks that might have been identified by the project team. In your opinion, identify the three most important risks that should be addressed and explain your reasons for selecting each risk.

How do you feel about the following statement: “Avoiding risks is the biggest risk of all”? That statement may seem contradictory at first, but it makes more sense if you apply the concept to various situations in life and business. For example, many people pursue a college degree because they feel it will increase their job prospects and earning potential. This can turn out to be true but is not a guarantee. Others may find this path too risky and prefer to enter the job market right away. Although the first group of people take the risk of their college degree paying off in the long run, the second group are also taking the risk of limiting their potential for the future. Similarly, the nature of entrepreneurship is built upon the risk of investing time and money into something that could potentially fail. Even established businesses could become outdated or be outperformed if they stop taking certain risks. Just as the concept of risk can apply in a general sense, it also applies to investments that individuals and businesses make. Calculated investment risks are not always guaranteed to pay off, but a zero-risk approach may not be as safe as it sounds either.In this Assignment, you will address questions related to returns and risk premiums.To prepare for this Assignment: Review this week’s Learning Resources.Refer to the Academic Writing Expectations for 2000/3000-Level Courses as you compose your Assignment.By Day 7Submit your responses to the following prompts.Explain the differences between the arithmetic return and the geometric return. Include in your explanation what factor determines the difference between arithmetic returns and geometric (compounded) returns. (75–150 words, or 1–2 paragraphs)If you own a stock with volatile returns over a 2-year period, will the average return be higher or lower than the geometric return? Explain why. (75–150 words, or 1–2 paragraphs)Why is it more convenient to display your investment returns in percentage terms rather than dollar terms? (75–150 words, or 1–2 paragraphs)Would a common stock or a corporate bond demand a higher risk premium? Explain why. (75–150 words, or 1–2 paragraphs)What are the differences between a bond risk premium and an equity risk premium? (75–150 words, or 1–2 paragraphs)Explain whether it is possible to earn excess returns without taking on additional risk. (75–150 words, or 1–2 paragraphs)