StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Risk in the business world - Essay Example

Cite this document
Summary
The effects of a risk, if encountered, can be far-reaching than anticipated; “when bad things happen, they can occur as an unexpected bundle of correlated or uncorrelated events…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Risk in the business world
Read Text Preview

Extract of sample "Risk in the business world"

Risk Management It is difficult to objectively say how much risk is involved because risk cannot be quantified. The effects of a risk, if encountered, can be far-reaching than anticipated; “when bad things happen, they can occur as an unexpected bundle of correlated or uncorrelated events that could add up to a significant value-killer loss” (WSJ, 2014). Moreover, risk inherent in any decision varies from one context and situation to another. However, this much can be said that a CFO is generally faced with more risks than managers in other departments in an organization.

There are four basic ways in which a CFO can handle risk; avoid, reduce, assume, or transfer the risk (Silverman, n.d.). A CFO’s attempts should be directed at managing risk in the very order as mentioned here. Personally, a CFO handles risks by collaborating with and influencing the CEO, and also by maintaining independence (Egon Zehnder International, 2008). The challenge for a CFO is to focus on controls, and at the same time, on business partnering. Being able to balance the two conflicting claims enables a CFO to deliver business results.

Professionally, a CFO handles risk by trying to assess it in advance and informing the concerned authorities so that it can be managed in time and effectively, if encountered. The best source of risk assessment is historical records and past experiences coupled with expert opinion. In addition, various software like Primavera Risk Analysis can be used to assess and manage risks involved in a project. References:Egon Zehnder International. (2008). Managing the Evolving Relationship between the CEO and the CFO.

Retrieved from http://www.egonzehnder.com/files/ceocfo.pdf. Silverman, J. R. (n.d.). Risk Management. Retrieved from http://www.yourownfamilycfo.com/Services.2.htm. Wall Street Journal. (2014). 10 Issues Keeping CFOs Up at Night. Retrieved from http://deloitte.wsj.com/riskandcompliance/2014/07/08/10-issues-keeping-cfos-up-at-night/.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Risk in the business world Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Risk in the business world Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/finance-accounting/1670853-risk-in-the-business-world
(Risk in the Business World Essay Example | Topics and Well Written Essays - 250 Words)
Risk in the Business World Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1670853-risk-in-the-business-world.
“Risk in the Business World Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1670853-risk-in-the-business-world.
  • Cited: 0 times

CHECK THESE SAMPLES OF Risk in the business world

A Firms Risk Consciousness

Unequivocally, the world has become a global village as boundaries among nations are shrinking due to technological advancements (growth in ICT) and modern inventions.... It is worth mentioning that strategic planning includes defining short and long-term enterprise goals, mission, vision, and code of conduct and formulating strategies/procedures to accomplish business goals.... business enterprises and consumers benefit from this expansion since new opportunities are created and new products are launched respectively....
5 Pages (1250 words) Essay

Risk Assessment. The business of Tesco

Vulnerability to risks the business of Tesco which is spread in several countries all over the world is vulnerable to several risks.... A list of risks to which the business of Tesco is vulnerable has been given in tabular form below.... Risk 1 Interest Rate Risk 2 Foreign Currency Risk 3 Liquidity risk 4 Credit Risk 5 Insurance Risk The two major risks to which the business of Tesco is most vulnerable are the interest rate risk and the foreign currency risk (Frank 174)....
7 Pages (1750 words) Essay

Risk Management - Theory and Application

This paper "Risk Management - Theory and Application" is about the theories of risk and return analysis in international business.... While the foreign firm boasts a fundamentally sound business, the fact that it involves investment in another country requires consideration of the various risks.... This work describes different kinds of risk, problems that can occur, methods of measuring risk for investment analysis.... The main question lies between safety and risk for any potential investment....
8 Pages (2000 words) Term Paper

Executive Summary For Integrated Risk Management

The world has evolved rapidly over the last few decades.... This concept basically assumes that a product exists in every phase of its life cycle if we look at the world as a whole.... hellip; The integrated management of risk motivates employees to venture into risky activities as long as these risks are balancing out other risks and thus bring down the risk of doing business.... Another example if the concept used mostly in International business Management (IBM) called 'International Product Life Cycle'....
6 Pages (1500 words) Essay

How to take risks in business

The plans have the impact of helping the business in question visualize in the manner in which to attain the enjoyable heights in operations that have since only been dreams.... The moment's one individual decision maker in any form of business takes the first step geared towards what the individual really wants for the business.... he risks that we are referring to in such a case are the risks that are likely to help the business be recognized, get the required attention, and forcefully propel it forward in its operations....
5 Pages (1250 words) Research Paper

INTERNATIONAL BUSINESS 10 QUESTIONS

f there are adverse economic conditions affecting the business environment in one country, they may escalate and affect other countries and have a high chance of ending up adopting global proportions.... Globalization can broadly be defined as the continuous process through which there is an ever increasing level of integration among companies, people and the governments of different nations all spread out all over the world.... It is mainly driven by investment and increased… It has been noted that in the event that globalization is not restricted, there is a general hampering of development in the less developed countries of the world which ends up affecting the local businesses in those 1....
2 Pages (500 words) Essay

Business Risks in American Culture

In a country, where there is a threat of invasion of American culture, establishment of a business is quite risky.... s the manager, the first and foremost task to handle No: Institute's How would you, as the manager of this company, deal with the risk associatedwith doing business in countries that feel threatened by American culture?... hile establishing a business in a foreign country, the manager is burdened with the responsibility to understand all the associated risks....
1 Pages (250 words) Essay

Risk in Financial Context

These decisions include such issues as accepting new… The actual meaning of the word ‘risk' is difficult to explain despite the different definitions by different scholars as in their definition risk meant different things in their situation.... It is worth noting that risks and In this context, the greater the risk, the more that alternative is unfavourable while if the risk is lower the alternative is the best for an individual to take a course of action into it (ALEXANDER, 2008)....
7 Pages (1750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us