Assessing impact on management risk, Financial Management

Assessing Impact:

As with the assessment of likelihood, a valuable way of assessing impact would be the creation of categories of impact as follows:

Level

Descriptor

Description

A

Insignificant

Negligible. No risk of injury, low $ loss, small delays, no reputation impact

B

Minor

Easily remedied, medium $ impact

C

Moderate

High $ loss, capability impaired, moderate impact on reputation

D

Major

Major $ loss, major impact on reputation

E

Catastrophic

Extreme $ loss (bankruptcy), huge political impact, total loss of reputation

The end result of the evaluation process would be to classify each event with a probability figure (1 to 5), and an impact figure (A to E).

Just as it is critical to involve as many people as possible in the identification phase, a variety of people should be involved in the evaluation phase. Not everyone has the same views of whether a particular event is likely to occur, or the impact that event would have on the business.  By getting a number of viewpoints a truer picture of the risk invariably arises.


Posted Date: 10/1/2012 4:09:01 AM | Location : United States







Related Discussions:- Assessing impact on management risk, Assignment Help, Ask Question on Assessing impact on management risk, Get Answer, Expert's Help, Assessing impact on management risk Discussions

Write discussion on Assessing impact on management risk
Your posts are moderated
Related Questions
Comment on the subsequent statement: “Since the U.S. imports more than it exports, it is essential for the U.S. to import capital from foreign countries to finance its current acco

Explain how earnings available to common stockholders and common stock dividends paid from the current income statement affect the balance sheet item retained earnings. The cha

Explain official reserve assets and its major components. Answer:  Official reserve assets are those financial assets which can be employed as international means of payments.

Letter of Credit (LOC) A popular bank instrument begins that a bank has granted the holder an amount of credit equal to the face amount of the L/C. A bank guarantees payment of

Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks protected against by cas

Explain the term "present value of the firm's operations" (also known as Enterprise Value ).  What does this number represent? The present value of the company's free cash flo

Case Study based on Financial Statement Analysis of Hatsun Agro Private Limited 800x600 Normal 0 false false false EN-IN X-NONE X-NONE

What is Financing Decision Provision of funds required at proper time is one of theprimary tasks of finance manager. Identification of the sources, deciding whichtypes of fu

Question 1: Give an account of the role of governmental bodies and officials in the making of public policies. Question 2: What do you understand by the term "Governmen

Complete the financial reporting for each period and develop recommendations using the templates provided. Procedure 1. Read the case study. 2. Complete the financial reports