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

Dd-aa model, a Suppose you are the TA of Econ 3602 and one student does not...

a Suppose you are the TA of Econ 3602 and one student does not know how to derive the DD schedule. Show this student how to derive the DD schedule. Support your answer with equatio

Explain learning outcomes of financial management, Explain learning outcome...

Explain learning outcomes of financial management By the end of this subject guide as well as having done the relevant readings and activities you should be able to

Return payment method, when asked to calculate return method given cash flo...

when asked to calculate return method given cash flow before depreciation how do you do it

Free cash flow, Free Cash Flow Free cash flow presents the amount of ca...

Free Cash Flow Free cash flow presents the amount of cash generated by the existing operations of a corporation and that is not needed for reinvestment in new projects in the f

Accounting period - accounting principle, Accounting Period - Accounting Pr...

Accounting Period - Accounting Principle Accounting period refers to span of time at the end of that and for which the financial statement are prepared to throw light on the r

Capital gain or loss, An Investor can receive income from this ...

An Investor can receive income from this source when the bonds purchased at discount are held up to maturity or when he sells the bond before ma

Tax-backed debt obligations, Tax-backed debt obligations are the debt...

Tax-backed debt obligations are the debt instruments issued by counties, states, cities, towns, special districts and school districts. These are secured by some

Explain vernon’s product life cycle theory of fdi, Explain Vernon’s product...

Explain Vernon’s product life-cycle theory of FDI. What are the strength and weakness of the theory? Answer:  As to the product life-cycle theory, companies undertake FDI at a ce

Why use the modified du pont system to calculate roe, Why would an analyst ...

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain. In fact, an analyst would not use the Modified Du Pont equ

Micro/Macro Question, You have been hired as an economic advisor to the Sou...

You have been hired as an economic advisor to the Southeastern Conference. As your first assignment they have asked you to identify three microeconomic and three macroeconomic issu

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