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Ford Motor Company - Risk Management Plan Proposal

I have to write a 600 word paper about Ford Motor Company. I have to discuss the following concepts and describe their relevance to Ford Motor Company:

a) Risk measurement techniques - in 300 words

b) Risk management techniques - in 300 words

Note: For this assignment, please make reference to the attached risk management outline that is provided. Please be sure to properly cite all references used.

Prepare 2 Microsoft® PowerPoint® slides with speaker notes illustrating a summary of both concepts discussed above.

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a) Risk measurement techniques - in 300 words

In a large corporation such as Ford Motor Company that has several divisions and independent operating businesses, proxy or analog method is used to measure risks, which involves identifying several companies which are similar to the entity's different divisions and then, Identify the capital and other key financial variables of these companies and analyse the relationship (including by regression) between the capital and other variables and Use this relationship to calculate the amount of capital the division should hold on a "stand-alone" basis according to its key financial variables.

Reference: http://austega.com/risk/meas/opriskmeth.htm

For example, Ford has several brands such as Ford, lincoln, volvo, etc. as well as service brands such as Ford credit, each of them being indepdent operating businesses. Such businesses or individual entity's within the Ford umbrella can be compared with similar public companies for risk measurement.

Another popular risk measurement technique that can be used by Ford is Delphi Technique. As we all know that slowdown in economy, rising costs and tough competition from far more efficient Japanese players such as Toyota has made it increasingly difficult for companies such as Ford to survive, Ford can rely on industry experts to deal with complex ...

Solution Summary

I have to write a 600 word paper about Ford Motor Company. I have to discuss the following concepts and describe their relevance to Ford Motor Company.

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