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    Business Risk Analysis; Global Financing and Exchange Rate

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    1.) How do I conduct a business risk analysis and what does business risk analysis mean?

    2.) How do I analyze global financing and exchange rate mechanisms and what does global financing mean and wht does exchange rate mechanisms mean?

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    Answers are included in brainmass.doc file attached.

    1) How do I conduct a business risk analysis and what does business risk analysis mean?
    Business risk analysis is simply the control of a company's chances of losing on an investment. Risk analysis allows the businesses to proactively identify and prevent problems before they occur or by reducing the impact of problems when they do occur. Risks need to be continuously assessed throughout the project as the nature, probability, and impact of risks change by phase and activity. A risk analysis also assesses the possibility that the risk will occur in order to weigh the cost of mitigation. Risk analysis identifies a risk, quantifies the impact, and assesses a cost for mitigating the risk.

    Risk analysis is an investigation into the various assets, assigning risk and determining mitigations. To do this, the risk assessment team must investigate all the assets, taking into account all the variables that can affect the costs. The steps that are followed in a risk analysis are
    1. Identify the assets.
    2. Assign value to the assets.
    3. Identify the risks and threats corresponding to each asset.
    4. Estimate the potential loss from that risk or threat.
    5. Estimate the possible frequency of the threat occurring.
    6. Calculate the cost of the risk.
    7. Recommend countermeasures or other remedial activities.

    On completion of the risk analysis, the information allows the risk manager to perform a cost-benefit analysis (CBA), comparing safeguards or the costs of not adding the safeguards. Costs are usually given as an annualized cost and can be weighed against the likelihood of occurrence. As a general rule, safeguards are not employed ...

    Solution Summary

    In a 1084 word solution, the response provides an excellent analysis of the two subjects in the questions.