...Relationship between corporate financial analysis and financial risk Any business will face some financial risk, its objective, not the people's will. However, if the business through good financial analysis, financial risk can be effectively prevented and controlled. In this regard, companies should focus on strengthening the financial analysis of the financial risks of business operations in a variety of financial risks for timely prediction and prevention, so as to improve economic efficiency of enterprises. Based on this, we have launched some discussion, want to contribute to a certain extent, corporate financial risk prevention. First, the financial analysis of the current Chinese enterprises widely used (A) comparative analysis Comparative analysis, as the name suggests, is to more than one set, or a set of comparative data or index, pairwise comparison, analysis, study, to determine the actual operating current business situation of enterprises and financial risks. Normally enterprises in comparison, and more is the issue and planned, the current number and the number of installments, business data and industry data, the actual number of the department and other departments and other indicators of the actual number of comparisons and analysis. (B) the structure analysis Structure analysis method refers to a particular financial indicators seen a whole, with its data as a part of the molecule, divided by the overall financial indicators to calculate the ratio...
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...THREAT FRAMEWORK Information systems are frequently exposed to various types of threats which can cause different types of damages that might lead to significant financial losses. Information security damages can range from small losses to entire information system destruction. The effects of various threats vary considerably: some affect the confidentiality or integrity of data while others affect the availability of a system. Currently, organizations are struggling to understand what the threats to their information assets are and how to obtain the necessary means to combat them which continues to pose a challenge. The ISF’s Information Risk Analysis Methodology (IRAM) enables organizations to access business information risk and select the right set of security controls to mitigate that risk. IRAM2 Founded in 1989, the Information Security Forum (ISF) is an independent, not-for-profit association of leading organizations from around the world. It is dedicated to investigating, clarifying and resolving key issues in cyber, information security and risk management by developing best practice methodologies, processes and solutions that meet the business needs of its Members. ISF aims its products at large public and private sector organizations, and produces an annually updated Standard of Good Practice for Information Security. This approach has three phases: a business impact assessment which determines the security requirements of the business, a threat and vulnerability...
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...AFIN310 Equity Analysis Assignment General Electric (GE) historic business model GE has a business model that has been successful over many recent decades. In GE’s Historical business model, Jack Welch and Jeff Immelt as executives for GE have been focused on trying to expand the business as well as improving performance internally. The key features to GE’s successful business model lies within their organizational culture, core competencies and specific strategies used. GE’s organizational culture is about individual achievement which provides everyone with opportunities to grow themselves as individual such as exercising their responsibilities, integrity and being more creative. GE’s core competencies adds value to the success of its business model as the GE selects best practices and implements them perfectly which will be beneficial to them while promoting future growth. Furthermore, GE aims to become the market leader for the sectors they are profitable in, such as their financial services sector where GE Capital has grown hugely. Changes to the business model and strategy GE focuses on innovating with new business models by listening to what their customers want such as having more flexibility achieved by converting capital investments to operating expenses. Changes have been made in relations to GE’s culture which focuses on providing them with a lean management, speed & competitiveness, commercial intensity and digital capability. These simplified changes are...
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...Guillermo Furniture Store Finance Concepts July 2, 2011 FIN/571 Guillermo Furniture Store Finance Concepts The risks associated with financial concepts in the case of Guillermo Furniture raises when a company considers joining forces with another company. In such a case with Guillermo Furniture, trying to forecast future purchasing of materials is more difficult because the chance for over purchasing may come into play if the company does go the route to sell itself to a competitor. The questions that come to the forefront is whether the merger will pick up what the other company has on hand. Risks vs. Reward Guillermo Furniture having been approached by a competitor about joining forces brings into play the idea of risk vs. reward. Guillermo Furniture has thought about selling the company or maybe closing the business and possibly merging with the competition. Should Guillermo Furniture do any of the above, what are the risks vs. reward in any of these options? Using information obtained from the sales forecast is used to create the sales budget. “This budget is a result of decisions to create the conditions that will generate a desired level of sales.”(Horngren, 2008). Managers usually take into consideration a number of factors when examining risks for their company. These factors can be looked upon as risks for the company as well. Some of the factors include reviewing past patterns of sales which can be used to help with predicting future...
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...When we look at the terms of risk reduction and hazard control we get the terms of eliminating and reducing the issues. Where control of hazards seek to maintain instead of removing the process. The term that risk reduction is applied to is a complete understanding of the intent of the criterion to ty risk- reducing the probability of the events occurring. In the terms of the second and third definitions of risk because they include both the probability of the event and the severity of the harmful consequences. Risk reduction is a term that capture the fundamental concept that harmful events consist of the three phases. Jensen, R. C. (2012). Risk-Reduction Methods: For Occupational Safety and Health (1st e A physical model is one that thing would be (like if you were creating a model of say a building, park, airplane or other large structure or area), sometimes it's actual size if it is small enough. You build or have built that you can touch. Sometimes it is a miniature version of what the real. What I mean by physical models is those that are meant to represent the physical world, as opposed to – for example – biomechanical, or computers models. Jensen, R. C. (2012). Risk-Reduction Methods: For Occupational Safety and Health (1st ed.). Whenever you are planning or one have to deal with risk and hazards we should looking in to the process from the beginning to the end. Where do we want to be at this point in the project as...
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...Risk Factor Analysis— A New Qualitative Risk Management Tool John P. Kindinger, Probabilistic Risk and Hazards Analysis Group, Los Alamos National Laboratory John L. Darby, Probabilistic Risk and Hazards Analysis Group, Los Alamos National Laboratory Introduction Project risk analysis, like all risk analyses, must be implemented using a graded approach; that is, the scope and approach of the analysis must be crafted to fit the needs of the project based on the project size, the data availability, and other requirements of the project team. Los Alamos National Laboratory (LANL) has developed a systematic qualitative project risk analysis technique called the Risk Factor Analysis (RFA) method as a useful tool for early, preconceptual risk analyses, an intermediate-level approach for medium-size projects, or as a prerequisite to a more detailed quantitative project risk analysis. This paper introduces the conceptual underpinnings of the RFA technique, describes the steps involved in performing the analysis, and presents some examples of RFA applications and results. project activity flow chart to help organize the RFA. The flow chart defines the tasks to be modeled and their interrelationships for the project schedule analysis. WBS and schedule tasks may be consolidated and/or expanded to explicitly highlight those tasks and influences that are expected to have a significant technical risk and/or significant uncertainty in schedule or cost performance. The flow chart is developed...
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...What is financial accounting? Financial accounting is regarded as a professional in modern society. Most of the firms, especially the large ones, need it and have a particular department or team called accounting. In universities, financial accounting becomes a compulsory subject which BBA students must study. It is so well known that almost all people have heard of it. What actually is financial accounting? More specifically, what the main objectives or roles financial accounting has so that firms need it at a critical manner? Generally speaking, the purpose of accounting is to give relevant data or information that is necessary to make sound decision for the firms. And the main objective of financial accounting is to prepare financial statements such as statement of financial position, income statement, statement of owner’s equity and statement of cash flow. The preparation must be guided by generally accepted accounting principles, “GAAP” in short, of the physical location. The statements are then used to tell the external users the performance of the firm (Eisen, 2003). And the primary need for financial accounting, or sometimes called financial accountancy, is to minimize the principal-agent problems in organizations. This is to be done by evaluating and monitoring agents’ (manager) production and presenting the performance to people who interest in. In addition, financial accounting serves a lot of important objectives. It aims to understand the operation of the business...
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...Week 1 Financial reporting and its analysis has an important role in the information intermediaries (auditors, press, financial analysts) and financial intermediaries (banks, insurance companies, mutual funds) functioning. Information intermediaries and financial intermediaries use the information from the financial reports to investigate the investment opportunities and find the “good” ones (Palepu, Healy & Peek, 2013). The “lemons” problem explains the problem in identifying the “good” and “bad” ideas being offered in the market (Holod & Peek, n.d.). The “bad” ideas are valued by investors at an average level, as they know that in the market there are both types of ideas. This approach, unfortunately, leads to less attractive conditions of financing to the owners of “good” ideas; the proportion of “bad” ideas increases. The identification of “good” investments can be performed by following the four steps (Palepu, Healy & Peek, 2013): * Business strategy analysis * Accounting analysis * Financial analysis * Prospective analysis All the above analysis get the information from the financial statements, publically data available, from business application context that consists of credit analysis, debt analysis, general business analysis and other details on corporate business (Palepu, Healy & Peek, 2013). The business strategy analysis is a tool to form the performance expectations using industry data and competitive strategy data. Accounting analysis assess...
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...Business Analysis and Valuation Report Prepared By: Version # Updated on ------------------------------------------------- Acknowledgments ------------------------------------------------- If applicable, include acknowledgement to contributing individuals: ------------------------------------------------- ------------------------------------------------- Analyst’s Name | Number | E-Mail Address | | | | Document Name | | Date Created | | Milestone 1 date submitted | | Milestone 2 date submitted | | Milestone 3 date submitted | | Finalization date | | | | | | | | REPORT VERSION RECORD The Business Analysis and Valuation Report is a managed document with tracking of versions, changes, and release dates for each of the three milestones. Version Name | Version Number | Date | Author(s) Name(s) | Change Description | | | | | Document created | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Milestone versions of the report are issued including the complete document with the sections completed to date to reflect the work to date by the analyst team. The milestone versions of the document are authorized for release only after the analyst’s signature has been obtained. Milestone 1 PREPARED: DATE:___/___/___ (for acceptance) (, signature) POSITION: ___ Milestone 2 PREPARED: DATE:___/___/___ ...
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...Financial Analysis Tools Nicola Maclin American Military University Managers should have the ability to assess performance of decisions they have made or intend to make, through structured and robust financial analysis. Managers need tools to forecast or predict as they struggle to make decisions on a daily basis to execute business strategy for the company. Financial analysis tools can drive projections and predictions in many areas of the business, from planning for production and distribution to decisions on a product or service. Managers can use these tools to both assess and improve business performance. Performance evaluation is an important component of managing a business. Managers need feedback to evaluate how well they have accomplished business strategy and managed key business process. Managers need to be able to link strategy with profitability. Financial analysis tools can help provide that much needed feedback. Financial data can be used to compute ratios analysis. These financial ratios gives managers the first look at the company’s vital signs and is used to assess a complete financial health and identify operational problems. Ratio analysis allows management to quickly and efficiently address concerns like: return on capital investment and the company’s profit margin. Ratio analysis can be an effective and useful management tool if ratios are calculated on items that are meaningful and where practical steps can be taken to make improvements in...
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...The role of writing in financial field Abstract As far as we are known, writing plays an important role in our daily life and is essential to all people from all walks of lives. Writing can prompt the fast development of the individual progress as well as their professional capacity as well. I am willing to come true this aim in the way of writing, so I do my best to interview a person, her name is Doris. We have the opportunity to pick up some techniques and significant skills in the way of giving question-- how to write in an appropriate way in some degree. Now, Doris is working in financial field. There is no doubt that we can learn some key points of how to write something in this field from her useful and important experiences. This assignment which is an informational report aims to give a brief introduction about the different genres of writings, then provide some useful instructions to her expected audience, what’s more, making those audience known that writing can convey unexpected reflection of our daily life in reality. The importance of writing in financial I have acquire that writing could promote her to achieve a lot of things during the process of her career such as data analysis, strategy decision making, and more about the international business. Moreover, Doris has spent 3 more years working in this field. And everyday, she takes one and a half to write. Meanwhile, she will try her best to finish her tasks, no matter how difficult the tasks are, she...
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...is financial resources? Companies often need finance for starting or continuing business operations. Small businesses typically need start-up finance, while medium and larger companies may need finance to expand operations. Different types of financial resources are usually available based on the company’s size and needs. Each financial resource offers different advantages or disadvantages to companies. Financial resources are the money that are available to a business for spending in the form of cash, liquid securities and credit lines. Before going into business, an entrepreneur needs to secure sufficient financial resources in order to be able to operate efficiently and sufficiently well to promote success. Short definition of internal and external finance. To provide internal and external finance means to engage in business activities using either monies from within a company or funds from outside. This is the key and most important difference between these two funding options. When a company uses internal finance, it takes advantage of existing supplies of capital from profits and other sources. External finance involves the use of money new to the company, from outside sources, to fund planned activities. Consequence of not managing your financial finance. By not managing your financial resources things can go wrong quickly for your company. Your company will be at risk and I’m speaking about financial risk. Financial risks are associated with the financial structure...
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...Risk Assessment Matrix (High-Medium-Low) The following Matrix can be used to help determine the risk ranking of a finding and its associated recommendations. Classification of high, medium or low usually occurs because of a combination of factors. The problem noted and or failure to implement a recommended solution could have the following impact: High Medium Low Potential significant life/ safety threat. Remote life or safety threat. No life or safety threat. Potential exposure of large volume PII or other confidential data. Potential exposure of any amount of confidential data. No confidential data. Impact on financial statements is material (PWC SAS-112 financial risk is rated high). Reportable financial statement impact. (PWC or SAS 112 medium risk ranking). No financial statement impact. (PWC or SAS 112 low risk ranking). Potential campus wide impact: 1. Major administrative computing system internal control weakness. 2. Potential for mission critical process or system failure or breach. (e.g.: inability to timely register students or pay employees). Departmental or unit only impact. Small subsection of people or transactions affected. Large dollar amounts or highly liquid assets at risk (cash). Medium dollar amount at risk or assets not liquid or convertible to cash. Low dollar amount at risk. Lack of major control step. Significant control weakness creates potential for fraud. Other compensating controls exist. Several other compensating controls. This...
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...also have to take it into consideration. First the positive points are: High incomes Having my own business can give me an opportunity to have a high salary. The income which I earn is related to the productivity pricing and market plan. All these activity is under my control. Do the things you like Owning a company provides you an opportunity to work in a place that you really enjoy. Working in an industry which are passionate helps you work more efficient and motivated. And it also allowed you to create new things and increase your own satisfaction. The negative points are: Financial risks The disadvantage of owning a business is that maybe you will suffer the financial risk. Whether you used your savings or borrowed money for start up costs, the money invested in your company is at risk.(Johnson, 2014) If you run your own business, you are the only one who take responsibility of the risk. Once the company go out of the business, the owner will lose their initial investment or default the bank loans and it will cause bankrupt. Stress As a business owner, you have to take care of everything in your company.There are some things your usually worry about—competition, profit, employees, customer problems and etc. As the owner, you are responsible for being your employees as well. Time occupation People always think running a business that they can have more time to accompany their families and more spare times. However the reality is contrast, running a business is much...
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...THE RISKS OF ENGAGING A MINING IN AFRICA Business Report April 9, 2015 Chi Minh Bui Word count: 1,121 Table of contents Executive Summary 3 Introduction 3 Main findings 4 1. The exploitation risk is medium 4 2. The security risk is high 5 3. The health risk is low 5 4. The economic risk is low 5 5. The financial risk is medium 6 Conclusion 6 Recommendations 7 References 8 Executive Summary The purpose of this report is to explore and explain the opportunities and challenges Winton Carter Mining (WCM) may face when entering into a joint venture with ATZ in a mining operation in Kango, Gabon, Central Africa. WCM has an opportunity to apply its experience in the mining industry in terms of management and production for short-term and long-term gain. By engaging in the project, WCM will improve its reputation, increase its goodwill because of a likely increase in its share price, and potentially establish a new considerable source of income. The risks, however, are substantial. Firstly, security risk that is considered high due to social instability of African countries may reduce the site’s revenue considerably and cost about $1 million annually to mitigate. Secondly, there is a medium exploitation risk because of quality of geologists’ reports. Moreover, economic risk and financial risk...
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