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CMA Final · Entrepreneurship and Startup · Risk Management Strategies

A founder of a Pune food-delivery startup prepares a document that lists possible risks, rates each by likelihood and impact, names an owner for each, and records the planned response. This document is most commonly called a:

It is called a risk register. This tool lists identified risks, scores their likelihood and impact, assigns responsibility to owners and records the planned responses. Other documents like term sheets, cap tables or cash flow statements serve funding, ownership or liquidity purposes rather than risk tracking.

  1. ACash flow statement
  2. BRisk registerCorrect
  3. CTerm sheet
  4. DCap table

Explanation

A risk register records identified risks with their likelihood, impact, owner and response plan. A term sheet covers investment terms, a cap table shows ownership, and a cash flow statement reports cash movements. None of these tracks risk ratings and owners.

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