Financial markets are the forums in which buyers and sellers of financial assets such as stocks and bonds, and commodities such as grains, oil and gold, meet. Because there are uncertainties of outcome, organizations must develop strategies to manage the risk associated with it.
Write a paper of not more than 10 pages on business and financial risk, as follows:
Identify the major business and financial risks such as interest rate risk, foreign exchange risk, credit, commodity, and operational risks.
How do organizations measures risk and what global initiatives exist in financial risk management?
Use APA standards in writing your paper.
Please cite references© BrainMass Inc. brainmass.com October 25, 2018, 8:48 am ad1c9bdddf
Find attached the guidance (in Microsoft word) required to complete this work.
Oil Exportation Business and Foreign Exchange Risk
Surname, First Name (ID Number)
School of Student
The aim of this paper is to explore how an oil exploration business is affected by the uncertainty in foreign exchange rate and how such a risk can be measured, and also to look at the global initiatives that exist in financial risk management for such a business. Register of foreign currency exposures, table of projected foreign currency cashflows, sensitivity analysis, and value at risk have been identified as techniques for measuring foreign exchange risk in oil exportation. Settlement initiatives, trading initiatives, payment initiatives, and credit adequacy initiatives have been identified as the global initiatives existing in financial management.
One of the major risk problems facing an organization that is into oil exportation is the issue of uncertainty in the foreign exchange rate between the organization's country and the countries where the crude oil are being exported to. This type of uncertainty is known as the foreign exchange risk and involves ...
The expert identifies and addresses business and financial risks.
Auditing: Material weakness, internal audit, change in control risk
1. Fisher, Inc. is a large corporation that is regularly audited by a public accounting firm. Fisher, Inc. also maintains an internal auditing staff.
Which do you think matters more to Fisher's board of directors: internal or external auditing? Why do you think so?
Which do you think matters more to Fisher's stockholders: internal or external auditing? Why do you think so?
2. The CEO of your company has asked you to help prepare for the upcoming company audit. One of the items the CEO has asked you to do is suggest a number of sources in which you could get information that would be needed to prepare the description of internal control in the audit working papers.
Prepare a memo that you will present to the CEO in which you do the following: Suggest the sources from which you can obtain information that would be needed to prepare the description of internal control in the audit working papers.
Explain what potential ethical and legal issues could be presented if these sources are not found.
Develop solutions for those issues.
3. Depending on the results of their tests of control, the auditors may restrict substitutive procedures.
Discuss and contrast the following concepts: the planned assessment of control risk
the revised assessment of the risk after tests of controls have been performed
4. It has come to the CEO's attention that Sally, a company salesperson, grants the rights to wholesalers to return unsold product. He asks you to discuss the following at the next board of directors meeting: In the system of internal control, are Sally's actions a significant deficiency or a material weakness?
Explain your reasoning and rationale.
5. This is the first year that you have audited Hurst & Johnson Corporation. You discovered that the company is carrying its property, plant, and equipment at appraisal values and determines depreciation on the basis of these values. This is considered a very large scope-limitation, and you have not been able to form an opinion on the financial statements taken as a whole.
Discuss the ethical issues involved with this situation.
Explain how you should handle this situation.
Explain what type of report you should issue and why.