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
Problem: (a) Critically analyse interest rate swap and currency swap. (b) Explain why a bank may face credit risk when it enters into offsetting swap contracts. (c) Two

Q. What do you mean by Utility? Utility: - Financial leverage assists considerably the financial manager while devising the capital structure of the company. A high financial l

Assume Main Street Store’s Net Sales in 2010 were $1,000,000 and it’s Net Income in 2010 was $17,000. Thus, between 2010 and 2011 Main Street Store’s net sales increased 20%. Durin

that the business has far fewer linens than it needs, so he makes a major linen purchase on open account. Which of the following terms refers to the fact that partners Ma and Runni

Question: On a pilot basis a Government Department, PPO, is preparing its financial statements using accrual basis. The following information is provided: The following bala

applicability of an operating cycle in vegetable growing business

using the operating cycle and any other financial management knowledge,discuss the applicability of such cycle to poultry business in Uganda(consider broilers)

Discuss how a business might limit agency problem between management and creditors

Q. Types of investment decisions? (1) Short-term investment decisions: - This kind of investment decisions related to the short-term assets. These decisions are as well called

Yield to put is the rate at which the present value of cash flow to the first put date is equal to the price plus interest rate. It is used for