Analyze and explain the key finance risks associated with one or more of your investment alternatives.
Risk is an aspect of any organization's operation. When it is recognized, understood, and managed, risk can set the stage for sustainable growth. Companies need identify risk within their operations and plan a systematic approach to managing it.
According to www.anao.gov.au, "effective risk management contributes to better decision-making because it develops a deeper insight into risks and their potential impact. It is a structured and disciplined approach: it aligns strategy, processes, people, technology, and knowledge with the purpose of evaluating and managing the uncertainties the enterprise faces as it creates value."
For our current purposes, we can classify the risk of a firm into two types: business risk and financial risk.
- Business risk is the riskiness of the firm without debt, which is due to the uncertainty associated with the ...
This solution discusses finance risks that come with investment alternatives.