RMI- Risk management Class 1.How might a firm find out what risks it has? 2.How
ID: 2724424 • Letter: R
Question
RMI- Risk management Class
1.How might a firm find out what risks it has?
2.How can a firm transfer its risk to others more capable of handleing the risk??
3.Suppose Tesla, the car and battery company, was considering a plant for cars in France. What risk management practices or techniques would you suggest to Tesla directors?? This answer can be put in the form of a mistake if need be.
4. What are ways or measures that a firm's risks are measured? In other words, in general terms, what measurement techniques are used from what we have seen in this course.
Explanation / Answer
Risk: Risk means a probability that a loss may be incurred due to internal and external vulnerabilities and that can be avoided by taking action to correct it on time.
Risk may be calculated by using risk measurement calculator developed by Mr. Robert Simon however this tool is not a precise tool it does indicate areas where risks and potential losses exist, such as the rate of expansion and the level of internal competition.Generally risk calculator measures risk of three types these are-1.Risk from growth, corporate culture and information management.For example Rapid Growth could be a risk and a firm may suffer losses because of it like if a firm is growing very quikly then it may not have time to train its employee. Hence, unchecked growth could lead to lost sales and diminished quality.
Ans2: A firm has many option to transfer the risk for risk management:
a) An insurance agent may be employed who will guide the clint for the service and insurance advice.
b) a supervisor may be employeed who will guide the other employee regarding the kind of work they have to do,
c)consultant may be hire who will guide about different services provided by the firm.
Ans3.The cars and batteries that are manufacturing should be randomly check and a supervisor shold be employed he can check the work on regular basis.
A test driving should be taken to check whether it is comfortable and made according to the expectation.
A finance officer should be employed to check whether he estimated cost is matched with actual cost.
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