The primary risk facing companies can be grouped into four categories, namely; Hazard Risk Strategic Risk Financial Risk Operational Risk In a tabular form, how would you categorize the risk factors below based on the above risks? Economic Distress Mismanagement Technological Causes Working Capital Problems Fraudulent Management Lack of board effectiveness Boards' risk blindness Poor leadership on ethos and culture Defective communication Excessive complexity Inappropriate incentives Information "glass ceiling" Managerial inefficiency and ineffectiveness Over expansion Ineffective sales force High production costs Poor financial management Risk assessment strategy Inappropriate commercial policy Absence of manpower training and development policy Capital inadequacy Socio cultural factors Income instability Public policy

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 77P
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The primary risk facing companies can be grouped into four categories, namely;

  • Hazard Risk
  • Strategic Risk
  • Financial Risk
  • Operational Risk

In a tabular form, how would you categorize the risk factors below based on the above risks?

Economic Distress

Mismanagement

Technological Causes

Working Capital Problems

Fraudulent Management

Lack of board effectiveness

Boards' risk blindness

Poor leadership on ethos and culture

Defective communication

Excessive complexity

Inappropriate incentives

Information "glass ceiling"

Managerial inefficiency and ineffectiveness

Over expansion

Ineffective sales force

High production costs

Poor financial management

Risk assessment strategy

Inappropriate commercial policy

Absence of manpower training and development policy

Capital inadequacy

Socio cultural factors

Income instability

Public policy

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