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 8-10 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?
EXTRA Instructions for IP5
Format and structure:
Use APA standards in writing your paper.
Please submit your assignment.
Your assignment will be graded in accordance with the following criteria. Click here to view the grading rubric.
This assignment will be assessed using additional criteria provided
here. For assistance with your assignment, please use your text, Web resources, and all course materials.
This is not just about financial risk such as bonds, stocks, etc. It is about both business risk and financial risk
You can use a company or an industry as an example to explain some risk concepts, but your paper should not be targeted to a particular industry.
Please make sure you have
- Discussions of business risk in general, especially in the areas of operational risks, and discussion of the concept of risk management
- Discussions of some risk management frameworks, such as the four categories of possible responses to business risks—accept, transfer, avoid, and reduce, and the measuring of risk, risk tolerances, etc.
- Define each type of risk, and discuss some tools and hedging techniques in managing this particular type of risk.
- Discussions of risk measurements such as risk tolerance
- Discussions of initiatives of managing risks from global business, such as diversification, foreign exchange risk, cultural risk, political risk, etc.