Risk Management Report Example

While working on a project or conducting research, one may be assigned the peculiar task of writing a risk management report example. The essence of risk management lies in troubleshooting and risk prevention. Not only is the later concerned with preventing the former, but it also governs a wide range of human activities: from health safety to hazard prevention, from crime reduction to financial security. Any business strives to protect itself from any potential risks and losses. Therefore, a risk management report example is bound to enlighten the managing force on what steps should be taken in order to omit any issues and secure the company’s prosperity. First of all, it would be reasonable to explain the essence of risk management. Risk management is a disciple that sets the goal to prevent a potential issue from happening, rather than eliminating its implications. Risk management can cover a large variety of fields. It may involve fire security, construction safety, engineering plans, and securing the profits of a company. In any case, while the disciplines where risk management is applied may vary, its main methods and approaches remain the same. Its main principles involve: identification of the potential threat; critical assessment of the vulnerability to the potential threat; determining the actual risk of the potential threat likelihood; determining the measures required to reduce the potential threat likelihood. As a result, one may suggest the following example of a risk management report, which attempts to address the security issues of a computer network at an average accounting office. To: Management Staff From: Risk Management Officer Topic: Malware and Virus Threat Report Dear coworkers, as we know, the security of our computer network has recently been compromised by malicious software gained through third party web resources. Our work is largely dependent on our computers, therefore, if one would become out of service, the company would inevitably face a reduction in productivity. Therefore, a number of steps have been suggested to avoid further exposure in the future. Below can be seen the table of potential risks: Threat Possibility Losses in productivity Potential financial losses Malware Viruses Breach High 50% Up to 30% Network Security Breach Significant 50% Up to 90% Third Party Web Resource Consumption Critical 25% Up to 10% As one can see, the statistical data suggests that malware and viruses have the potential to hinder our profits. Furthermore, a compromised network may be susceptible to hacker attacks, leading to significant potential losses. Viewing third party resources on the job is also considered a threat to overall productivity. Therefore, a number of steps are suggested: Hire an IT specialist to set up and monitor network security; Install and configure sufficient network security software such as anti-viruses and firewalls on all machines; Forbid and block the use of third party web resources during the work shift; In order to summarize, the preventative steps described above should be sufficient enough to secure our company from losing productivity due to network breaching issues.

personal finance 5 - 1057 Words

1. If you are borrowing money and paying interest, would you prefer an interest rate that compounds annually, quarterly, or daily? Why? (2-4 sentences. 1.0 points) Annually would cost you less than quarterly. I would go what will cost the cheapest. 2. In your Section_5 folder, navigate to and open the Example_Credit_Report, and then answer the questions below. N/A a. What is the total balance of Jessie Robinson s real estate account? (0.5 points) N/A b. What is the total balance of Jessie Robinson s revolving account? (0.5 points) N/A c. Has Jessie Robinson ever applied for bankruptcy? (0.5 points)N/A d. How many creditors have made inquiries about Jessie Robinson s credit? (0.5 points) N/A e. Do you think†¦show more content†¦Why? (3-6 sentences. 2.0 points) A Regions Personal Credit Card is a revolving line of credit that allows you to borrow funds to pay for goods and services you purchase, to get a cash advance, or to pay balances you owe to other creditors. You may use your Personal Credit Card for: †¢ Purchases †¢ Balance transfers †¢ Cash advances †¢ Overdraft protection, up to the amount available for cash advances under your credit limit, when linked to your Regions checking account †¢ A monthly statement will be sent with balance and payment information. †¢ You must pay at least the minimum payment by the payment due date to avoid late fees, to avoid the loss of any promotional rates and to keep your account in good standing. †¢ If you send a payment to the payment address on the statement and it is received by 5 p.m. local time, it will be credited to the account as of the day it is received, even if it is not posted on that date 12. Describe a real or made up but realistic example of a time when you might apply for a loan. (2-4 sentences. 1.0 points) When I apply for college. If I do not get approved for enough college scholarships, I will need to pay for college some how. 13. In your Section_5 folder, navigate to and open the Example_FAFSA. Complete the steps below to save a copy of the file with your initials in your Section_5 folder. TIP: The FAFSA is the Free Application for Federal Student Aid. This application is used by many students to get federal funding forShow MoreRelatedFp101 Week 1 Dq Answers1559 Words   |  7 PagesRefer to Figure 1-1 of Personal Finance. List the five steps in the personal financial planning process. Share one or two questions you may ask yourself when you are in Step 1.   According to Figure 1-1 of Personal Finance, the five steps in the personal financial planning process are: Step 1 – Analyze your current finances, Step 2 – Develop goals, Step 3 – Identify and evaluate strategies to achieve your goals, Step 4 – Establish and implement your plan, Step 5 – Reevaluate and reviseRead MoreTraditional Methods Of Managing Personal Income1641 Words   |  7 PagesThere are three traditional methods of managing personal income. 1. 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Understanding the history of a Biomedical scientist Free Essays

Introduction If one was to ask someone what a biomedical scientists was 15 years ago, the response would probably be pardon?, but now that we are in the 21 century it has become more of acknowledge role in the healthcare industry and amongst the public. However the term biomedical scientist is still not used, one is more likely to hear terms like virologist, haematologist, microbiologist, cytologist, and many others. Biomedical science is a broad term used to encapsulate a diverse range of professions in health care and other industries. We will write a custom essay sample on Understanding the history of a Biomedical scientist or any similar topic only for you Order Now The first sign of viruses in history was probably discovered in the Egyptian times, when a dead corpse was found in tomb with abnormal tissues of smallpox. The body seem to show signs of yellow fever and other viruses and signs of paralytic poliomyelitis, which is caused from polio. As time went on people with polio viruses seemed to be successfully continuing with their life, however when the daunting HIV and Hepatitis B broke out there were more deaths. These viral diseases not only caused harm to humans but also to the planet, plants, fish, birds and other living mammals. Conclusion The word virus comes from the Greek meaning ‘poison’, the word virus has been commonly used in the English language for years. One of the very first people to identify invisible viruses that was able to cause infectious diseases, was a bacteriologist, unfortunately technology that we now use to recognise disease were not present. Edward Jenner was a as scientist who cleverly used materials from cowpox as a vaccine to prevent smallpox. Many other people of whom were not scientist were able to create vaccines to prevent other disease e.g. Louis Pasteur he created a vaccine for children that had been bitten from a rabid animal. How to cite Understanding the history of a Biomedical scientist, Essay examples

Tactical and Strategic Intelligence Felicia & Fred

Question: Understand at a deeper level the economic analysis of strategic and tactical investments, the effect financial leverage has on firm value, and the integration of investment and financial corporate strategies Analyze issues that face modern corporate managers when making capital budgeting and capital structure decisions Apply finance valuation techniques for purposes of business decision making Integrate, synthesize, and present finance concepts and analyses Be able to use the corporate finance tools necessary to develop the skills, knowledge, and wisdom (SKW) in current demand by employers Understand the qualities needed for careers such as corporate managers, financial analysts, investment analysts, brokers, and business practitioners. Answer: Introduction Felicia Fred is a public company of US which deals with manufacturing of jewelry. The company has previously expanded its capacity and included Czech crystal bracelet in its product line. This year the company has included womens accessories, specially the handbags in its product line. These products are outsourced by the company to a manufacturer in Asia through a licensing agreement. The manufacturer has exclusive rights to Felicia Freds women logo handbags so that the company can preserve the intellectual property and branding rights in the United States. The company has also increased its investments in the inventory. With the increase in product line the company anticipates that the demand of the product will increase and it will require additional storage space to meet the demand of its customers. Abstract The difference between strategic and tactical decision making Strategic decision making and tactical decision making are two different ways used in a business to take decisions. The major difference between the two is time oriented. The difference between strategic and tactical decision making is that strategic decision making deals with the planning and taking educated decisions regarding the future problems of the company whereas the tactical decision making deals with the problem faced by the company at present and taking steps to overcome that problem. The strategic decision making allows the companys decision makers to forecast the future direction of the company and identify emerging trends and markets for the company. They can plan the future problems and based on the forecasted results of the projects decide whether to go ahead with the projects or close a project. The tactical decision making deals with the current problems and uses the current market conditions to analyze the situation and competition and then decide the actions to be taken to achieve its goals. It focuses on the resources at hand and focuses on ways to achieve the strategic goals. The planning and decision making involves the challenges and risks in carrying out the strategic goals. The decision by the company Felicia Fred to expand the business and enter the handbag distribution business is strategic in nature. The company has previously expanded its capacity and included Czech crystal bracelet in its product line and inclusion of the other womens accessories, specially the handbags makes perfect sense and allows the company to provide more variety of products to the same customer base and increase its sells and profits in the long run. It also provides a new direction to the company which is moving from a jewelry manufacturing company to manufacturer of accessories for women and can be a one stop solution to all the requirements of the customers. Thus without having to increase the expenditure in marketing and advertisement the company can sell various products and is a perfect strategic product line extension. Thus the decision of entering the handbag distribution business is strategic. (Owang, 2013) The indicators of financial performance used in evaluating whether an investment has successfully increased shareholder wealth of company are Profitability ratios: Profitability of a company is the capacity of the company to make profits. In a business, if the investments by the company are able to generate profits then the investment is considered successful. The various Profitability ratios like gross margin ratio, return on equity, return on investments etc. gives a good idea whether the company has been performing better than the competitors in the industry. Liquidity ratios: The Liquidity ratio helps the investor find if the company can cover its debt: long term and short term and helps to boost confidence among investors and suppliers. The various Liquidity ratios like current ratio, quick ratio and cash ratio helps in determining whether the company has been able to cover its liabilities and helps in gaining the trust of the investors and other stakeholders. Efficiency ratios: The efficiency ratio helps investor to find if the company can use its resources and make profits efficiently. The various Efficiency ratios like total assets turnover ratio, fixed assets turnover ratio helps the investors understand how efficiently the assets have been utilized by the company. (Chand, 2015) The cash flow statement, inventory turnover ratio and accounts receivable turnover ratio are other indicators of financial performance used in evaluating if the investment has been successful in increasing shareholder wealth of company. Financial Trend Analysis Liquidity Ratios of the firm: The Liquidity ratio helps the investor find if the company can cover its debt: long term and short term. Current ratio: Current ratio is the ability of a company to pay its current liabilities using the current assets. It is given by Current Assets/ Current Liabilities. (Current Ratio) In the prior year, Current Assets = 29 M Current Liabilities = 22.4 M Thus current ratio = 29/ 22.4 = 1.29 In the current year, Current Assets = 40.9 M Current Liabilities = 36.2 M Thus current ratio = 40.9/ 36.2 = 1.13 The current ratio has decreased from the previous year. Hence the company will not be able to clear its current liabilities as efficiently as it did last year. The investment in handbags has reduced the current assets. Inventory Turnover ratio: Inventory Turnover ratio shows number of times a companys inventory is sold and replaced in a time period. It is given by Inventory Turnover = Sales/ Inventory In the prior year, Sales Revenue = 950 M Inventory = 13 M Thus Inventory Turnover ratio = 950/ 13 = 73.08 In the current year, Sales Revenue = 975 M Inventory = 24.2 M Thus Inventory Turnover ratio = 975/ 24.2 = 40.29 The inventory turnover ratio has decreased from the previous year. Hence the company has increased its inventory and is unable to rotate its inventory as quickly as it did last year. The investment in handbags has reduced the inventory turnover ratio and increased inventory. Accounts receivable turnover: Accounts receivable turnover shows the number of times the company collects its receivables from its credit customers. It is given by Accounts receivable turnover = Net Credit Sales/ Average Accounts receivable In the prior year, Sales Revenue = 950 M Average Accounts Receivable = 4.6 M Thus Accounts receivable turnover ratio = 950/ 4.6 = 206.52 In the current year, Sales Revenue = 975 M Average Accounts Receivable = (4.7 +4.6) /2 M = 4.65 M Thus Accounts receivable turnover ratio = 975/ 4.65 = 209.68 The accounts receivable turnover ratio has increased from the previous year. Hence the company has improved its collection method and is able to quickly collect the receivables compared to the last year. Solvency Ratios of the firm: The Solvency Ratios of a firm is used to measure its ability to meet its long term debt. Debt to Equity ratio: Debt to Equity ratio of a firm is used to measure the ratio of financing of the company using debt from creditors and investments from the investors. It is given by Debt to Equity ratio = Total liabilities/ Total Equity In the prior year, Total liabilities = 109 + 36.2 M = 145.2 M Total Equity = 169.1 M Thus Debt to Equity ratio = 145.2/ 169.1 = 0.86 n the current year, Total liabilities = 200 + 22.4 M = 222.4 M Total Equity = 126.6 M Thus Debt to Equity ratio = 222.4/ 126.6 = 1.75 The Debt to Equity ratio has decreased from the previous year. Hence the company has reduced the debt and raised more investment from the investors. Thus the company was able to generate investment from the investors for the new product line of handbags. C Profitability Ratios of the firm: Profitability of a company is the capacity of the company to make profits. Gross profit margin: Gross Profit Margin is defined as Gross Profit/ Sales. It is used to calculate the profit earned by the company after removing the cost of goods sold per unit of sales. (Chand, 2015) In the prior year, Gross Profit = (950 801) M = 149 M Sales = 950 M Thus Gross Profit Margin = 149/ 950 = 0.15 In the current year, Gross Profit = (975 779.3) M = 195.7 M Sales = 975 M Thus Gross Profit Margin = 195.7/ 975 = 0.20 The Gross Profit Margin has increased from the previous year. Hence with the introduction of handbags the companys gross profit margin has increased. Thus the company is able to generate more profits from the investment in the new product line of handbags. Net Profit Margin: Net Profit Margin is defined as Net Profit/ Sales. It is used to calculate the profit earned by the company per unit of sales. A higher profit margin ratio is preferred as the company will have more revenues to pay its expenses.(Chand, 2015) In the prior year, Net Profit = 13 M Sales = 950 M Thus Net Profit Margin = 13/ 950 = 0.014 In the current year, Net Profit = 52.5 M Sales = 975 M Thus Net Profit Margin = 52.5/ 975 = 0.054 The Net Profit Margin has increased from the previous year. Hence with the introduction of handbags the companys net profit margin has increased. Thus the company is able to generate more profits from the investment in the new product line of handbags. Return on Equity: Return on Equity is given by Net Profit/ Shareholders equity. It calculates the profit earned per unit of investment by the shareholders. In the prior year, Net Profit = 13 M Shareholders Equity = 126.6 M Thus Return on Equity = 13/ 126.6 = 0.103 In the current year, Net Profit = 52.5 M Shareholders Equity = 169.1 M Thus Return on Equity = 52.5/ 169.1= 0.31 The Return on Equity has increased from the previous year with the introduction of the handbags. Integrate Prior Financial Analysis With the inclusion of the Czech crystal bracelet in the product line in the prior year the net profit of the company was 13 Million. Gross Profit Margin = 149/ 950 = 0.15 Net Profit Margin = 13/ 950 = 0.014 The gross profit margin of the company was 15% and the net profit margin was 1.4%. Thus it can be seen that the inclusion of the Czech crystal bracelet in the product line made the business profitable. Assuming that in the current year the only change affecting the companys product line sales was the inclusion of the handbag product line. The profits have increased from 13 Million to 52.5 Million. In the current year, Gross Profit Margin = 195.7/ 975 = 0.20 Net Profit Margin = 52.5/ 975 = 0.054 The profits margins have improved compared to the prior year. Thus the inclusion of this product line enhance gross margin for the company. Long-Term Financial Planning The companys sales are projected to grow by 10% next year. Assuming that the increase in sales, will result in increases of all the income and expenses at the proportionate level. Thus the forecasted income statement will be Felicia Fred Income Statement For the Next Period Ended 000s next Revenue: 1,072,500 Less: Cost of Goods Sold (795,960) Less: Depreciation Expense (61,270) Gross Margin 215,270 Selling, General Administrative Expenses (64,020) Income Before Interest Taxes 151,250 Interest Expense (16,500) Income Before Taxes 167,750 Income Taxes (77,000) Net Income 90,750 Similarly, the balance sheet of the next year Felicia Fred Balance Sheet For the Next Period Ended 000s Assets next Cash 13,200 Accounts Receivable 5,200 Inventory 26,600 Total Current Assets 45,000 Land 55,000 Building Equipment 660,000 Less: Accumulated Depreciation - Building Equipment (413,200) Total Long Term Assets 301,800 Total Assets 346,800 Liabilities and Stockholders' Equity Accounts Payable 10,100 Salaries Payable 0 Interest Payable 1,550 Short Term Notes Payable 3,500 Taxes Payable 11,000 Total Current Liabilities 26,150 Bonds Payable 109,900 Total Long Term Liabilities 109,900 Common Stock 120,000 Retained Earnings 90,750 Total Stockholders' Equity 210,750 Total Liabilities and Stockholders' Equity 346,800 Thus the net profit of the company will increase to 90.75 Million by the end of next year if the sales increase by 10 %. The external financing required by Felicia Fred next year will be the total liabilities of the company next year and investment from the shareholders. Total liabilities = Total current liabilities + total long term liabilities = 26.15 + 109.90 Million = 136.05 M. Additional investment from the shareholders = 210.75 169.1 M = 41.65 M The company already has an external financing of 146.1 M. Additional Total external financing required for next year = 31.6 M Qualitative and Ethical Considerations of Financial Analysis The qualitative factors that should be considered by a company seeking to raise capital are: Company Culture: The managers must consider the working culture of the company and the impact of the capital investment on the method the work is executed in the organization. With the investment in technology the flow of goods and information can be improved and changes the method of working the employees are used to. Due to Financial leverage the risk is higher and the business environment can be stressful than before. Thus it is an important factor and managers must take necessary steps to increase efficiency of the company with the capital investment. Quality of product and service: The capital investment can help company be able to have increase in capacity to produce deliver goods and services to larger target audience. The company should take proper care that with the capital investment, the quality of the goods and services should not be decreased with the additional pressure on employees to have a farther reach and increased risk in business can cause the quality to reduce. Working Environment Issues: The manager should consider the effect of capital investment on the environment which includes safety of the employees, effect on the working environment of the company and control the pollution which it causes taking it consideration all the stakeholders of the company. With the increase in debt, the financial leverage of the company will increase. If the financial leverage of the company is high the cost of capital will increase as the lenders will be concerned about the future growth of the company as investment of the equity of the company is low which increases the risk of the firm. Thus the company will be more careful in choosing projects and will avoid projects which are risker and can increase the risk of the business further. (The Agency Problem) If the cost of capital increases the shareholders are less likely to accept projects as the net profits are reduced whereas if the cost of capital decreases the shareholders are more likely to accept projects as the net profits are increased with reduced interest. The shareholders must be concerned about the ethics of managers selection processes because if the managers are ethical they will not choose projects for personal benefit and will take into consideration the benefits of all the shareholders. The qualitative considerations that are important for the mitigation of agency conflicts are Greater Compensation: If the managers are paid highly for their work they are less likely to work for personal benefits and will reduce agency problems. Intervention by shareholders: The shareholders should have a look at the projects and analysis the reports by managers before acceptance of capital projects. Threat of firing: The shareholders should have strict policies in place and should remove the managers if they find him working for personal benefits instead of benefits for the form. The different types of monitoring costs are: Cost of Board of directors, cost of issuing financial statements, and employee stock options. The monitoring activities should have meetings of the shareholders with the management and discussing the availability of funds for projects and various benefits of the projects to the shareholders. The firm should also publish financial statements so that shareholders can check the financial health of the company regularly. (The Agency Problem) The company must have transparent decision making process so that the managers cannot have projects for their personal benefits and the company should provide them better compensation, and regularly monitor the decisions to ensure ethical project investment decisions References Owang, J. (2013). Major Differences Between Tactical and Strategic Intelligence. Retrieved 30 July, 2016, from https://www.web-strategist.com/blog/2013/01/14/the-difference-between-strategy-and-tactics/ Leadcapitalng. (2012). The financial characteristics of a successful company. Retrieved 30 July, 2016, from https://leadcapitalng.wordpress.com/2012/02/08/the-financial-characteristics-of-a-successful-company/ Limbacher, M. (2015). Seven qualitative factors for evaluating investments. Retrieved 30 July, 2016, from https://www.fi360.com/blog/post/seven-factors-for-qualitative-due-diligence Investopedia. The Agency Problem. (n.d.). Retrieved 30 July, 2016, from https://www.investopedia.com/walkthrough/corporate-finance/1/agency-problem.aspx Chand, S. (2015). Ratio Analysis: Meaning, Classification and Limitation of Ratio Analysis. Retrieved 30 July, 2016, from https://www.yourarticlelibrary.com/financial-management/ratio-analysis-meaning-classification-and-limitation-of-ratio-analysis/29418/