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    Variability of operating earnings (EBIT)

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    Describe the components of business risk, and discuss how the components affect the variability of operating earnings (EBIT).

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    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 ...

    Solution Summary

    Impact of risk on variability of operating earnings (EBIT)