Assignment 3: Final Project
Create a 3- to 4-page report in Microsoft Word, addressing the following:
Perform a risk assessment of your new business and its information processes.
Research and describe the internal control systems and activities that will be required to protect your company's assets and information.
Specify the software or systems (such as virus protection software) that will be required for internal control and risk mitigation.
In compliance with BrainMass rules this is not a hand in ready report but is only guidance.
Risk assessment of new business and its information system:
The first risks of a new business are the market conditions. If the market is such that the product or service demand declines or the current demand is fully locked up by competition, the business is likely to face the risk of low revenues and low market share. The second risk of the business is its financial risk. The financial risk refers to the ability of the new business to pay its dues. There must be adequate cash available to pay the creditors of the business. In addition, there should be adequate working capital for the business. The new business must support its financial obligations. It must pay for inventory, equipment, office suppliers, and marketing costs to operate. The third risk is the management risk (1). There are significant challenges related to running a successful company. The risk of a new business is to hire inept managers. if the management is ineffective, there will be poor quality, low sales, and poor customer service.
The key risk of a new business is the risk of failure. This begins with an undifferentiated product. The product may not sufficiently be different from those of competitors to attract customers to purchase it. Another risk for a new business is the risk of destruction (2). This risk is related to risk of flood, fire, burglary, or hurricane. The new ...
The answer to this problem explains risk assessment of a new business . The references related to the answer are also included.