Deduced answers:
Why is the risk perceived differently?
This is so due to the following factors:
a. Internal environment of the firm: This brings into consideration the management
philosophy, risk appetite, objectives and business operations. It was earlier observed that
even though they both had a management philosophy, the risk appetite different and their
objectives which has exposed them to (directly related to) this risk differ, as well as the
business operations they carry out. The latter means a different market environment
which implies different influential forces.