a. Exposure to Risk and the Nature of Qualitative Risks
Exposure to risk refers to the extent to which a business or individual is open to uncertainties that can lead to potential financial loss. Qualitative risks are non-quantifiable risks, often involving subjective factors such as changes in customer preferences, regulatory changes, or reputational impact. These risks are challenging to measure but can significantly affect business outcomes​

b. Residual Risk
Residual risk is the level of risk that remains after all efforts to identify and mitigate it have been implemented. Even with robust risk management strategies, some risk is unavoidable. This remaining risk needs to be continually monitored to ensure it stays within acceptable limits​

c. The Dynamic Nature of Risk Assessment
Risk assessment is dynamic because the environment in which businesses operate is constantly changing. New risks can emerge due to market changes, technological advancements, or regulatory shifts. Dynamic risk assessment involves regularly updating risk evaluations to adapt to these changes, ensuring that previously unidentified risks are addressed and managed

d. Risk-Based Approach to Business
A risk-based approach involves identifying, assessing, and prioritizing risks that could impact business objectives. By focusing on the most significant risks, resources can be allocated effectively to mitigate potential threats, enabling businesses to operate sustainably while maximizing opportunities​