1. Describe the risk and how would you evaluate the overall situation?

Financial risk- in the process of determining the wellbeing of the organization, it will be vital to identify and analyze the uncertainties involved in investment decisions. As a result of that, it will be paramount to quantify potential losses that might be incurred both in the short-run and long-term (Lee et al., 2010). Since risk tolerance is acceptable, it will be vital to consider the amount of returns that are projected to rise from the individual capital outlay.

1. How would you evaluate the financial aspects of the decision to improve your management of this risk? (There may be none)

In order to effectively manage the finances that have been surrendered to make the organization to prosper, it is vital to understand the risks that are involved.  Therefore, to improve the management of financial risks, it will be important to control such a risk so as to optimize efficiencies. Such a strategy will take into account the need for meeting customer demands to gain a competitive advantage.

1. How would you evaluate the non-financial aspects of the decision?

In the process of evaluating the non-financial aspects of the organization, it will be important to be innovative to increase operational efficiency. Because of that, it will be paramount to measure non-financial systematic risks of the organization by comparing them with the entire market.

1. Who are the stakeholders?

The main stakeholders who will be accountable in such a trade will be external financiers. In this case, it will be important to take into account the money that will be received from banks and other non-governmental institutions (Brown, 2015).

1. What are the direct, tangible factors that influence the risk management plan?

Direct and tangible factors will take into account human labor. The reason for that is because human labor will aid in the implementation of corrective actions to be taken in managing the financial risks involved (Skoglund & Chen, 2015). Selecting the appropriate personnel to run the whole system will ensure that financial resources have not been wasted. 

1. What are the intangible ones?

The intangible factors will comprise of the unforeseen risks that might evolve in the future. That will take into account market changes because of different customer perceptions.  The risk tolerance of the organization will have to be based on current market trends.

1. Provide a brief summary of your plan for managing your selected risk.

As much as adequate financial outlay is concerned, it will be paramount to take into consideration the tangible and physical aspects of the organization. In this case, determining how to raise revenue and how it will be allocated will be necessary to make the organization enjoy the economies of scale. Since customer perceptions keep on changing, understanding how the organization influences the demands of each customer is important (Brown, 2015). Furthermore, to effectively manage such a financial risk, it is important to create a positive image for stakeholders.

1. How would you communicate the plan?

Adequate financial outlay is one of the important factors that make any business enterprise to prosper. As a result of that, it will be paramount to ensure that each stakeholder has been informed o how their finances will be utilized daily (Apostolik et al., 2015). The revenues that are projected to arise should also be documented to create transparency for them.

1. How would you implement the plan?

To implement the plan appropriately, it will be important to ensure that the plan has been documented. The written materials should be supplied to each stakeholder so that they can keep in mind the directions that the organization is taking. As a result of that, it will be easier to gather different ideas from the concerned stakeholders regarding the appropriate action that might be incorporated in the same plan (Brown, 2015).

1. How would you monitor the risk management plan into the future to ensure continued effectiveness?

To effectively monitor such a risk management plan, it will be vital to take into account how each task has been accomplished. In case some tasks have not been accomplished as scheduled, it will be vital to take corrective actions. Any changes that could have been recommended should also be incorporated into the plan to make each task to be executed as required (Allen, 2013). Any uncertainty anticipated should also be documented so that corrective action can be taken as soon as possible.

 

References

Allen, S. (2013). Financial risk management: A practitioner's guide to managing market and credit risk. Hoboken, N.J: Wiley.

Apostolik, R., Donohue, C., & Global Association of Risk Professionals. (2015). Foundations of financial risk: An overview of financial risk and risk-based financial regulation. Hoboken, New Jersey: John Wiley & Sons, Inc.

Brown, A. (2015). Financial Risk Management For Dummies. Erscheinungsort nicht ermittelbar

Lee, C. F., Lee, A. C., & Lee, J. (2010). Handbook of quantitative finance and risk management. New York: Springer.

Skoglund, J., & Chen, W. (2015). Financial Risk Management: Applications in Market, Credit, Asset and Liability Management and Firmwide Risk. Hoboken, New Jersey: John Wiley & Sons.