Evaluation and assessing probability of management risk, Financial Management

Assignment Help:

Evaluation:

Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process would determine the probability of the particular event occurring against the impact the event would have on the business if the event were to occur.

Assessing Probability:

 When assessing probability of particular events occurring, a useful basis is the classification of probability into categories. 

A method of doing would be as follows:

Level

Descriptor

Description

1

Rare

May occur only in exceptional circumstances

2

Unlikely

Could occur at some time

3

Possible

Might occur at some time

4

Likely

Will probably occur at some time

5

Almost Certain

Is expected to occur in most circumstances



Related Discussions:- Evaluation and assessing probability of management risk

Pvif, how do we get the pvif of a perpetuity

how do we get the pvif of a perpetuity

Explain why accounting profits and cash flows, Explain why accounting profi...

Explain why accounting profits and cash flows are not the same thing. Stock worth depends on future cash flows, their riskiness and their timing.  Profit calculations don't con

UMMB, what is the benefits of UMMB

what is the benefits of UMMB

Electronic communications networks, Electronic Communications Networks: ...

Electronic Communications Networks: In traditional stock exchanges, the buying and selling of stocks take place at a physical location only and the members have to conduct tradi

Provide three examples of mutually exclusive projects, Provide three exampl...

Provide three examples of mutually exclusive projects. Mutually elite projects are projects that compete against each other for our selection.  If a firm were considering the b

Relate lost sales to the definition of incremental cash flow, Relate the co...

Relate the concept of lost sales to the definition of incremental cash flow. While a new capital project is take on it may compete with an existing project or projects, causing t

Evaluate cost of preference share capital, Q. Evaluate Cost of Preference S...

Q. Evaluate Cost of Preference Share Capital? Cost of Preference Share Capital: - A fixed rate of dividend is to be paid on preference shares. However unlike debt the dividend

Mr, discuss the applicability of financial management in respect to poultry...

discuss the applicability of financial management in respect to poultry farming in uganda

Determine about the synergistic effect, Determine about the synergistic eff...

Determine about the synergistic effect When two or more companies join together there must be a synergistic effect. Synergy is when 2 + 2 = 5. Net present value of the two comp

Control ratios, Control ratios: Three important ratios are usually used by...

Control ratios: Three important ratios are usually used by the management to find out whether the variations from budgeted results are unfavorable or favorable.  These ratios are

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd