Assessing impact on management risk, Financial Management

Assignment Help:

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.



Related Discussions:- Assessing impact on management risk

Why do we need to learn finance, Why do we need to learn finance The qu...

Why do we need to learn finance The questions that you may thinking about right now are "Why do we need to learnfinance?  Shall we not leave it to people who are going to speci

COST OF CAPITAL, cost of capital, Financial Management The Nu-Nu Brothers I...

cost of capital, Financial Management The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equ

Out of cash, Out of Cash Calculated by taking organization cash on hand...

Out of Cash Calculated by taking organization cash on hand divided by its burn rate, yielding the time period that the organization will have enough cash to cover what it wants

Determine the preference shares - equity instruments, Determine the Prefere...

Determine the Preference Shares - Equity Instruments Sandwiched between equity share holders anddebt holders, preference share holders have promise of an assured dividend from

Valuation an option-free bond with the tree, Let us construct a binom...

Let us construct a binomial interest rate tree for a 5.5% option free bond taking Table 3 as the binomial interest rate tree. Table 1 shows the various values in

Financial Analysis Management, I need this in the next 24 hours urgently. I...

I need this in the next 24 hours urgently. If you can accept this, you must be meeting the deadline with strictly no delays or full payment refund is needed

Cost of capital, Provide an argument for including or not current liabiliti...

Provide an argument for including or not current liabilities in the cost of capital calculation.

Certified management accountant, Q. Certified Management Accountant? Ce...

Q. Certified Management Accountant? Certified Management Accountant (CMA) - An accreditation conversed by the Institute of Management Accountants which indicates the designee h

Government securities , The RBI, on behalf of the government, issues ...

The RBI, on behalf of the government, issues all T-Bills and Government dated securities. Being risk-free securities, they set the benchmark for the interest rate

Analyse financial statements - strength of business, Learning outcome to be...

Learning outcome to be assessed: analyse financial statements to make decisions on the strength and adaptability of a business. A numerical analysis of the financial statements of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd