StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Chapter 5 discusses Analyzing and Prioritizing Risks - Book Report/Review Example

Cite this document
Summary
The systematic risk refers a form of risk that affect a large number of portfolio of assets. It may be due to factors such as political conditions in country. It can also be due to…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.2% of users find it useful
Chapter 5 discusses Analyzing and Prioritizing Risks
Read Text Preview

Extract of sample "Chapter 5 discusses Analyzing and Prioritizing Risks"

THE MONSOON CUP CASE STUDY Risk analysis and categories There are basically two categories of risks ly systematic risks as well as unsystematic risks. The systematic risk refers a form of risk that affect a large number of portfolio of assets. It may be due to factors such as political conditions in country. It can also be due to natural calamities such as earthquakes, floods and landslides. This form of risk has less protection and it cannot be minimized easily. The case of Monsoon cup is a reflection of this form of risk.

Unsystematic risk refers a form of risk that affects a small amount of asset portfolio and it can be due to industrial actions such as strikes and go-slows. This form of risk can easily be minimized through proper diversification of investment and it forms one of the highly ranked risk in the initiation of a project (Heldman, 136-142).Political riskPolitical risk was evident in the case of Monsoon cup owing to the fact that its initiation was based on political grounds. The prime minister of Malaysia who is one of the leading political class members was the first to take up this risk when he first visited PulauDuyong in the year 2005.

By deciding to transform the island into a major tourism hub was a risk as he was not sure of the possible outcome. There seemed to be very little to be expected of the Island as it had very little resources and was hardly visited by famous people in the world. The political stability and national polices of the entire nation is also part of the political risk as it determined the number of people who from other countries who are willing to invest into the island (Heldman, 123). Direct foreign investments are highly dependable on the political policies and initiatives touching on economic growth and empowerment.

The visitation and the promise to transform the entire island by the prime minister lower the political risks thus encouraging investment. Foreign Exchange riskThis form of risk is associated with the exchange rate which determines foreign investment. The amount of foreign investment in the Monsoon Cup will largely depend on the exchange rates which mainly affects financial instruments. Appreciation or depreciation of the dollar will determine the returns expected from investments in the region especially by foreign residents (Adams, 43-45).

Probability impact scalesProbability indicates that a risk can be considered as an event that may occur. This ranges from 0 to 100 per cent. Impact defines a risk by its nature and it varies on how given risks affect key issues such as human life, investment and political factors (Schroeck, 03-09).Critical risks relates to those risks that have direct adverse effect on investment portfolio. In this case study such a risk includes foreign exchange rate risk.Significant risk have considerable amount of effect on the business operations and in this case such a risk include political risk.

Negligible risk refers to those risks that do not affect the business operations at all. Such include country risks. Risk Impact ScaleLEVELLIKELIHOODDESCRIPTION4Very LikelyHappens more than once a year in the country3LikelyHappens about once in a year2UnlikelyHappens after every ten years1Very unlikelyHas only happened onceExamples of risks that need response planResponse plan refers to steps that are taken in order to minimize the adverse effects of risk taking. The steps include risk avoidance, mitigation and transfer.

Examples of such risks in the above case study include credit or default risk, foreign exchange risk, interest rate risk and market risk (Poitras, 101).ReferencesAdams, C. F., Mathieson, D. J., Schinasi, G. J., Chadha, B., & International Monetary Fund. (1998). International capital markets: Developments, prospects, and key policy issues. Washington, DC: International Monetary Fund.Heldman, K. (2011). PMP: Project management professional exam : study guide. Indianapolis, Ind: Wiley.Poitras, G. (2002). Risk management, speculation, and derivative securities.

San Diego (California) [etc.: Academic Press.Schroeck, G. (2002). Risk Management and Value Creation in Financial Institutions. New York, NY: John Wiley & Sons.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Chapter 5 discusses Analyzing and Prioritizing Risks Book Report/Review”, n.d.)
Chapter 5 discusses Analyzing and Prioritizing Risks Book Report/Review. Retrieved from https://studentshare.org/management/1663213-chapter-5-discusses-analyzing-and-prioritizing-risks
(Chapter 5 Discusses Analyzing and Prioritizing Risks Book Report/Review)
Chapter 5 Discusses Analyzing and Prioritizing Risks Book Report/Review. https://studentshare.org/management/1663213-chapter-5-discusses-analyzing-and-prioritizing-risks.
“Chapter 5 Discusses Analyzing and Prioritizing Risks Book Report/Review”, n.d. https://studentshare.org/management/1663213-chapter-5-discusses-analyzing-and-prioritizing-risks.
  • Cited: 0 times

CHECK THESE SAMPLES OF Chapter 5 discusses Analyzing and Prioritizing Risks

Moving Beyond the Virtue Script in Nursing

Having an insight through the chapter one can come across different some questions which are as follows: 1) What is the most significant thing that you have identified about nurses work?... Moving Beyond the Virtue Script in Nursing Moving Beyond the Virtue Script in Nursing: Creating Knowledge Based Identity for Nurses Nursing is a noble profession, which is experiencing a rigorous watershed in today's modern times....
3 Pages (750 words) Essay

Analyzing Operational Risk Failure of Barings Bank

Overnight, the unscrupulous futures' trader from London who was previously the poster boy for Barings' high-growth earnings from Singapore's premium monetary exchange, SIMEX (In 1993, he documented nearly 10% of the bank's profits in futures' trading), took special advantage of the bank's vulnerability in not being able to hedge the risks that come with dealing in a concern as sensitive as this....
9 Pages (2250 words) Essay

Reducing Cycle Time in Corporations

In these circumstances we will provide a platform for the new system problem, views, and suggestions to effectively develop the… Since the qualitative risk analysis is most commonly used technique, also it does not engage predictions of loss or numerical probabilities.... On the other nd, this method engages defining a variety of threats, devising countermeasures should an attack take place, measuring the degree of vulnerabilities (TechTarget, 2009)....
17 Pages (4250 words) Essay

Chinas automobile industry Chapter 1 and 3

In line with this, China's automobile industry continues to progress as reflected in its annual car sold back in 2009.... On top of having a significant increase… Considering the success of China's automobile industry, this report will focus on identifying, analysing, and concluding whether or not the Started in 1984, the first wave of investment in the automobile industry in China includes the establishment of Beijing Jeep and Shanghai Volkswagen (Wu, 2006)....
4 Pages (1000 words) Essay

Summary Chapter 1 SOCI 1001

This is an introduction to the book as to what it contains and what it discusses about the sociology and what it discusses in various chapters of the book.... Subsequently, this book also discusses about unpacking the center as it outlines that most books focus on This is an introduction to the book as to what it contains and what it discusses about the sociology and what it discusses in various chapters of thebook....
1 Pages (250 words) Essay

PRIORITIZING PROJECTS AT D. D. WILLIAMSON

Williamson's prioritization model as a means of both As a means of understanding Williamson's model, the core components of his prioritization will be understood as: 1) establishing the criteria for prioritizing, 2) weighting the criteria, 3) refining the project lists as a result of steps one and two 4)developing shareholder buy in based upon the results that the weighting has generated.... Firstly, with reference to the way that these steps provide for an improvement within traditional project prioritization, the reader can quickly infer that the means by which such an approach are actually realied far exceed the ways that leaders and management typically venture into prioritizing work flow....
4 Pages (1000 words) Essay

Project Management Practices, Methodologies, Tools, and Techniques Used In the Expansion Project

The report will carry out an assessment of the Woody 2000 Project to evaluate the current project management practices, methodologies, tools, and techniques used in the expansion project.... This report is aimed to analyze the various problems during the execution of the project.... hellip; The primary objective of this report is to conduct a detailed assessment of the requirements that are considered critical to the completion of an expansion of the facility....
9 Pages (2250 words) Assignment

An Analysis of the Case Study Revealed Absence of Basic Project Management Practices

An in-depth analysis of the case study revealed the absence of basic project management practices that should have been done to achieve successful project completion.... Moreover, the project scope was not clear as to what the software should look like.... Its basic functionality requirements were not clear to Vendor Company (developer)....
6 Pages (1500 words) Assignment
sponsored ads
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.
Contact Us