Essay on Riks Management

The final stage of risk assessment is to determine the method in which to diminish, remove, regulate or manage the risk as to reduce financial loss or physical injury (Wolohan, 2013). Each of these three steps are ongoing for any organization as it is the duty of those in charge to reduce any and all risk for participants and spectators alike (Wolohan, 2013).

A safe margin in liquidity for the retail industry is often below 1:1. Morrisons Current Liability(CL) are far too higher than the current assts and that has greatly affected the ratios. Using long term borrowing to fund current assets will improve this ratio as will profits that generate cash flow. These results mean that Morrison’s ability to meet its short term obligations have improved slightly. The CR was up by 0.4:1 from 2008 to 2009 and the QR by 0.3:2 respectively. However, Morrison may not be able to pay off its bill as quickly as it should and this may keep its suppliers unhappy and unwilling to give eager service.

Usually, the most common risk management strategies can be subdivided into multi-stage approach in order to obtain a better impression of the underlying risks and thus to increase the probability of mitigating the firm’s risks properly and successfully. Also General Motors Corporation has developed various rules and guidelines to help manage minimize the risks associated with their business and investment operations.

Costco has many risks associated with its financial and operational performance. One of the biggest risks that Costco is facing todays is the competition from other retailers and wholesalers, such as Wal-Mart and Target. Costco compete with its competitors for customers, qualified employees and management personnel, suitable sites and suppliers. The retail business is extremely competitive and continues to get even more completive. Such events as the evolution of retailing in online channels has improved the ability of customers to compare prices and products and as a result enhanced competition. Any significant increases of competition may adversely affect Costco’s financial performance, and make Costco incapable to compete successfully in the future.

Risk is the likelihood of something undesirable happening in a given time (Merna, 2008). Risk management is a two-step process- identifying what risks exist and then handling them in a way best-suited to the business objectives (Investopedia, 2012). The Adidas Group is a well-known public company that began in 1949. From a company that produced the first soccer boot with removable studs, to evolving apparel, shoe and sporting goods company, the group is recognized globally (Adidas Group, 2012). As with any ever changing business, there are many risks that must be considered. Below are eight risks from various areas of operation within the company:

The purpose of this paper is to advise analyze the financial statements of Dillard’s, Inc. in order to recommend whether or not my client should invest $1 million in the large retail company. I will compare the financial statements of Dillard’s, Inc. its competitor, Kohl’s Corporation. Investing in retail can be risky because a retail company’s performance is very heavily influenced by factors that have nothing to do with the actual company such as the overall performance of the economy or the weather during the holiday shopping season. There is, however, potential for profitability within the retail sector. Based on my analysis, I recommend that the client should not invest in Dillard’s, Inc. for the following reasons. First, Dillard’s has experience a decline in net income in the last three years. Second, liquidity ratios indicate that they could face possible liquidity constraints in the future. Third, long-term debt paying ability ratios indicate that the company could have trouble paying off the principal of its current debt obligations. Fourth, the profitability ratios are well below industry averages, suggesting that there are more profitable companies to invest in within the industry. And finally, Investor analysis ratios provide mixed opinion of the future performance of the company. I conclude that retail can be a profitable industry to invest in if an investor has the risk tolerance and risk capacity to withstand the uncertainty, but neither Dillard’s

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

Identify the potential risks which affect the company and manage these risks within its risk appetite;

Risk is defined as the probability that a company will become insolvent and will not be able to meet its obligations when they become due for payment. The profitability versus

For this capability, strong financial support and effective saving processes as fundamental resources enable Woolworths Ltd to provide products at relatively lower prices. The effective saving processes include the global sourcing process and direct store deliveries also play an important role to achieve competitive prices by reducing inventory costs and operating costs. Besides, the long term and good relationships with suppliers makes Woolworths get this capability to get lower cost products. Then combining the online network and existing delivery system makes customers purchase more conveniently. Last, Woolworths Ltd is also engaging in product expansion in different industries.

Risk in relation to functions- HR management, economic operations, OHS, supply chain, local governance and compliance issues.

Business risk refers to the chance a business's cash flows are not enough to cover its operating expenses like cost of goods sold, rent and wages. Unlike financial risk, business risk is independent of the amount of debt a business owes (Guzman & Media, 2015). Financial risk refers to the chance a business's cash flows are not enough to pay creditors and fulfill other financial responsibilities (Guzman & Media, 2015). Financial risk is the additional business risk concentrated on common stockholders when financial leverage is used and depends on the amount of debt and preferred stock financing (Brigham & Ehrhardt, 2014).

Risk recognition and management are vital to the operation of this company (BHP Billiton 2015, p.20). According to the previous financial activities, there several significant risks influence BHP Billiton, which are commodity risk, foreign exchange risk, interest risk, transportation risk and sustainability risk.

Woolworths is the major supermarket grocery store chain in Australia, owned by Woolworths Limited. Woolworths is an incorporated public company, listed on the Australian stock exchange. This company has incomplete permissible responsibility through its shareholders and lies in the tertiary industry and retail sectors. Through their authoritative organization strategies and processes Woolworths has been able to make available to its 1.3 million customers a level of service, expenditure and manufacturing available across their franchise stores located across Australia. Woolworths' function as one of the largest public companies is obvious through its nature of management. This report will explain the nature and responsibilities of management in light of Woolworths.

On the other, although the majority of the information shown in the case study presents arguments for the fact that it was inevitable that Woolworths would fail as a business, it is also shown that the company was once a reputable company and generated high levels of consumer demand through the customer being able to buy “pick-n-mix sweets, a DVD, a magnifying headlight and a cheese grater “ in the same store. The revenue generated within the first six months of 2008 was £1107 million, which suggested that the firm was able to sell efficiently to an extent. If the financial department at Woolworth’s had evaluated the balance sheet and income statement from previous years, they would have potentially been able to minimize the risk of the high expenses, reduced profit margins and overall prevent the administration of the company that occurred in 2008. This point therefore indicates that it was not entirely inevitable that Woolworths would fail as a business, as measures could have been carried