We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The main threat to earn profits in the long run is the risk - Essay Example

Comments (0) Cite this document
Summary
MANAGING CHANGE BY MANAGING RISK INTRODUCTION: An organization is an entity which is structured with some objectives. To attain these objectives, these organizations carry on some kind of business. Except non-profit organizations, all these organizations have one objective in common; i.e…
Download full paper
GRAB THE BEST PAPER
The main threat to earn profits in the long run is the risk
Read TextPreview

Extract of sample
The main threat to earn profits in the long run is the risk

Download file to see previous pages... The risk in this sense comprises of two major elements. The first one is the probability that the system or the entity will fail to achieve its objectives. And the second is the consequences and results of such failure. In any business organization, risk is inevitable. However, how better the organization cope with such risks depends upon the techniques used by the entity for such purpose. The practice and act of identifying, assessing, handling and controlling risk related situations and issues in an organization is known as enterprise risk management. The process of risk management includes identification and tracking of risk associated areas, development of plans for mitigating risk, performance of risk assessment procedures and handling and monitoring risks. Thus, it may be seen that risk management is a very broad term and includes a number of issues being addressed during the application of risk management techniques. Along with identification and assessment of risks, the prioritization of risks is also an important part of risk assessment procedure. Thus, the process of risk management mainly focus on the probability of occurrence of unforeseen events in future and the impact of these events on the capability of the organization to achieve its objectives. ...
All these risks threaten the capability of an organization to achieve its objectives. Following are the risks that usually occur more frequently: 1. Systematic Risk: Systematic risk is a risk which cannot be predicted, mitigated or reduced in any way. This is due to the reason that this risk may occur at any time and is completely out of control. Changes in the government legislation or interest rates prevailing in the economy are examples of systematic risk. To mitigate the impact of such risks, it is advised that the organization should remain prepared for the occurrence of such risks at any time and should undertake proper plans to cope with such risk. 2. Non-systematic Risk: These are the risks which occur due to the features of assets. Changes occurring in the management decisions and employees’ strikes are the examples of this type of risk. These risks can be easily eliminated by using the diversification process. 3. Financial Risk: Financial risk rises when the organizations heavily rely on the debts and loans. This type of financing is called debt financing. This type of financing increases the liability of the organization as the organization is liable to pay such money back in future. Thus, it becomes necessary for the organization to keep enough reserves so that this money may be paid back in future. Thus, the degree of risk and uncertainty rises overall. 4. Operational Risk: Operational risk is the risk associated with the operational level of the organization. When this risk arises, organizations do not able to perform its operations properly. Thus, operational risk includes risks arising from business operations, information reporting and leadership and management style adopted by the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The main threat to earn profits in the long run is the risk Essay”, n.d.)
Retrieved from https://studentshare.org/business/1393791-see-attachment
(The Main Threat to Earn Profits in the Long Run Is the Risk Essay)
https://studentshare.org/business/1393791-see-attachment.
“The Main Threat to Earn Profits in the Long Run Is the Risk Essay”, n.d. https://studentshare.org/business/1393791-see-attachment.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Long-run U.S. Economic Growth
An increase in economic growth is supposed to raise the average standard of living of the people. While studying economic growth theory, it is important to differentiate between short term and long term ups and downs. Potential GDP in a nation is determined by the aggregate labor, capital and technology available and is often identified as the long term growth (Taylor, 125).
20 Pages(5000 words)Essay
Production in the Long Run
Most manufacturing companies fall under this class, for example, the motor vehicle industry and DVD players. In total product, it is difficult to measure the amount of output. With the average product, the total output divided by the output per capital employed.
8 Pages(2000 words)Essay
Explain the main determinants of exchange rate behavior in the long run and in the short run. In the context of your analysis di
Though foreign currency could be accessed in other forms such as exports and maybe in the tourism sector, the foreign exchange market has withstood the test of time as being the best and easiest way to acquire foreign currency. However, this market has been observed to be among the most volatile markets in the world.
8 Pages(2000 words)Essay
Short-run Phillips curve & the long-run Phillips curve
Short-run Phillips curve & the long-run Phillips curve How do active and passive views of these concepts differ? The Philips Curves are fundamental to the study of economics. The Curves represent the relationship between inflation and unemployment rates and, they have cross relationships with aggregate supply curves.
3 Pages(750 words)Essay
Strategic Analysis of Amazon.com
The idea is to correct the present way things are done and serve an educational purpose as to whether the firm’s strategies and operations can be improved (Kondo, 1988, p. 15-16). A paper by Mintzberg et al. (1976) included with the company’s 2005 letter to shareholders provides an indication of how Amazon.com goes about making strategic decisions.
5 Pages(1250 words)Essay
Businesses in the Long-run
The business may successfully make short-run production plans that can only be accomplished within a particular size of the industry. However, in the long-run, production may be increased and the cost of production decreased by expanding the size of the industry.
6 Pages(1500 words)Essay
Sampling on HCC gollf clubs (market research)
There are several ways to go about this. Membership lists are a great way to start. Another way is to find a contact that knows the target group. Getting referrals from others, or
8 Pages(2000 words)Essay
Explain why perfectly competitive firms cannot make supernormal profits in the long run but monopolies can
It makes truly perfect when the size of the firm is relatively small to the capturing market and all suppliers and buyers have good communication about the cost and
5 Pages(1250 words)Essay
Threat and Risk Assessments
t, which primarily focus on jurisdictional determination of the ability to respond to technological and natural disaster through identification, prioritization and assessment of threats that are caused by different criminals or crime groups (Ratcliffe, 2009). However, it is of
5 Pages(1250 words)Essay
Threat and Risk Management
conducted following an increase in anti-western sentiments among the Muslim population following the publication of offensive cartoons in a French newspaper. The tension is evident in probable and real terrorist attack on the office where the headquarters of the newspaper is
12 Pages(3000 words)Essay
Let us find you another Essay on topic The main threat to earn profits in the long run is the risk for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us