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

Explain money have time value, Why does money have time value? Positive i...

Why does money have time value? Positive interest rates point out that money has time value.  While one person lets another borrow money, the first person needs compensation in e

Shareholder value, SHAREHOLDER VALUE There are various measures used by...

SHAREHOLDER VALUE There are various measures used by market analysts and financial experts to derive the maximum Shareholder Value of a particular company but we would take the

Just-in-time inventory management, Q. Just-in-time inventory management? ...

Q. Just-in-time inventory management? It considerably improves the short-term liquidity of the business with a maximum financing requirement of $138533 rather than $155640. The

Define limit of theory of comparative advantage is realistic, What consider...

What considerations might limit the extent to which the theory of comparative advantage is realistic? Answer: The theory of relative advantage was initially advanced by the ninet

Measure a project’s risk as the change in the cv, Define why we measure a p...

Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in

Leverage, evaluate the importance of leverage in financial management of a ...

evaluate the importance of leverage in financial management of a small scale company

Characteristics of warrants, Characteristics of Warrants As mentioned e...

Characteristics of Warrants As mentioned earlier, a warrant is a variant of a call option and gives the holder a certain right to purchase shares of the company at a predetermi

Explain about centralised treasury function, Q. Explain about Centralised t...

Q. Explain about Centralised treasury function? Treasury departments are usually a feature of larger companies than Frantic although it is perhaps beneficial to consider the be

Calculate the total present value of the tax shield, Nortel is considering ...

Nortel is considering the purchase of a new  call routing system.  The system will cost $50M to purchase, an additional $7M to install, and will last for 30 years.  The CCA rate as

Cash flows vs accounting profits, Do you provide assignment help on Cash Fl...

Do you provide assignment help on Cash Flows Vs Accounting Profits. Do you have experts in this topic? Please suggest me if you can give me help with this topic.

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