Share
Explore BrainMass

Risk Management Lesson Plan

You are a senior financial consultant for 123 Corporation. Your CEO has asked that you train incoming consultants on financial management and risks.

You develop a lesson plan comparing financial risks of a popular retail clothing company and a utility company to help the trainees better understand risk management.

- Discuss the differences in risks associated with a retail clothing company versus a utility company.

- Which company has the potential for higher risk?

- Identify at least 3 sources of risk.

- Compare stability and variability in earnings, as well as the optimal debt ratio between the two - which company has the highest, and which has the lowest?

- Explain your rationale for each of your answers.

Solution Preview

You develop a lesson plan comparing financial risks of a popular retail clothing company and a utility company to help the trainees better understand risk management.
The popular retail clothing company whose financial risks are being compared is The Gap Inc. The utility company with which the risks are being compared is Southern Company.

- Discuss the differences in risks associated with a retail clothing company versus a utility company.
The risks associated with a retail clothing company are related to changes in trends, tastes, and styles. These changes can suddenly reduce the demand for the retailing clothing company and can lead to losses. There is a risk that large inventories of the ...

Solution Summary

The response provides you a structured explanation of Risk Management. It also gives you the relevant references.

$2.19