Managing the Finance Function Group 12
Managing the Finance Function Group 12
Architecture 101
There's beauty in simplicity.
effective
and 1. short term
efficient
use of 2. long term
funds
topics about managing the
finance FUNTION
The importance of knowing the risk management by the engineer managers because it
helps them to calculate the uncertainties and also predict their impact, consequently giving
organizations a basis upon which they can make decisions. It prepares the organization
for the unexpected by mitigating or minimizing the impacts of the risk even before it occurs
by “acting proactively rather than reactivity.”
DEFINE RISK.
Risk is the possibility of something bad happening. Risk involves uncertainty about
the effects/implications of the activity with the respect to something that human value such
as( health, well-being, wealth, property and environment).
Risk management and insurance
Risk may be classified as:
pure risk
Speculative
pure risk
is one which “there is only a chance of lost”. It means there is no
opportunities for gain or profit when a pure risks involve. Generally,
prevalent in situations such as natural disasters, fires or death.
speculative risk
speculative risk on other hand, is one where there is a chance of
both loss or gain. It is a category of that can be taken on
voluntarily and will either result in a profit or loss. All speculative
risks are undertaken as a result of a conscious choice.
WHAT IS RISK MANAGEMENT?
RISK MANAGEMENT is an organized strategy in
protecting and conserving the assets of people. Risk
management is known as detecting, analyzing, and
prioritizing risks to limit or eliminate their negative
influence on the project.
Purchasing insurance against property losses, using derivatives such as options or futures
to offset losses in underlying investment assets, or opening new foreign exchange positions to
limit losses from fluctuations in existing currency holdings while retaining some upside
potential are all examples of hedging.