Management of Financial Resources and Performance

Management of Financial Resources and Performance

TABLE OF CONTENTS
Introduction.................................................................................................................................................3
LO1.............................................................................................................................................................3
1.1 Identifying, calculating and interpreting key performance ratios from an organisation’s financial
statements....................................................................................................................................................3
1.1.1 Interpretation of efficiency, liquidity and financing ratios..................................................................3
1.1.2 Interpretation of Investment ratios......................................................................................................3
1.1.3 Recommendation of how performance can be improved....................................................................3
1.3 Using financial statements for evaluating comparative performance.....................................................3
1.3.1 Using of financial statement and online data to compare between competitors and industrial
averages.......................................................................................................................................................3
1.3.2 Use of industry comparison information and subscriber intelligence services....................................3
LO2.............................................................................................................................................................4
2.1 Evaluating several methodologies as well as approaches to the costing methods of services, functions,
products and activities.................................................................................................................................4
2.1.1 Treatment of direct and indirect cost in costing product and services.................................................4
2.1.2 Description of different cost treatment of job process and contracts...................................................4
2.1.3 Features and consequences of absorption costing...............................................................................4
2.2 Using methodology on marginal cost for supporting decision making procedures of short term...........4
2.2.1 Difference between fixed and variable cost........................................................................................4
2.2.2 Cost-Volume-Profit analysis and short term decision analysis...........................................................5
2.2.3 Relevant cost and application to decision making..............................................................................5
LO3.............................................................................................................................................................5
3.2 Using methodology on cost management for supporting business excellence, lean enterprise as well as
value chain analysis.....................................................................................................................................5
3.2.1 Relationship between lean enterprise, business excellence and value chains......................................5
3.2.2 Contribution of financial analysis on cost benefit of quality, throughput accounting, analysis of
waste, value analysis of activity chain.........................................................................................................6
3.2.3 Resource audit of value chain to measure effectiveness of each element and competitive advantage
of each process............................................................................................................................................6
3.3 Preparing and presenting accounting information of strategic management for analysing investment in
an advanced manufacturing technology as well as supporting competitive strategy....................................6

3.3.1 Identifying place of management accounting by analysing response to strategic positioning,
competitors and competitive advantage.......................................................................................................6
3.3.2 Appraising investments in the advanced technology..........................................................................7
3.3.3 Using balanced scorecard for supporting achievement over vision and strategy................................7
LO6.............................................................................................................................................................7
6.1 Appraising projects on capital investment utilising alternative methodologies......................................8
6.1.1 Distinction between profit and cash and the relevance to long term investment proposals.................8
6.1.2 Accounting rate of return, Payback and Net present value of an investment proposals......................9
6.1.3 Features and advantages of the alternative investment appraisal techniques.....................................10
6.2 Calculating cost of capital of any organisation and explaining limitations of uses..............................10
6.2.1 Calculation of equity, preferences and debt......................................................................................10
6.2.2 Weighted average cost and cost of capital using market and balance sheet values...........................11
6.2.3 Merits and demerits of different approaches of calculating cost of capital.......................................11
6.3 Evaluating opportunities of strategic investment as well as financially appraising strategic proposals11
6.3.1 Suitability of strategic investments in terms of strategic fits and exploitation of core competencies 11
6.3.2 Acceptability and feasibility of strategic investment against proposals criteria, stakeholders
expectations and strategic capability.........................................................................................................12
6.3.3 Qualitative and quantitative issues of strategic proposals.................................................................12
LO7...........................................................................................................................................................13
7.1 Identifying financial risks to operate in any international market........................................................13
7.1.1 Role and importance of international financial markets....................................................................13
7.1.2 Financial risk in the operation in international markets....................................................................13
7.1.3 Approaches for the managing economic, translation and transaction risk in international operations
................................................................................................................................................................... 13
7.2 Appraising decisions of international investment................................................................................13
7.2.1 Risk and complexities of capital budgeting in International context.................................................13
7.2.2 Calculation of forward rate and evaluation of a foreign capital project............................................13
7.2.3 Indirect and non quantifiable benefits and cost of international investment decision.......................13
7.3 Evaluating options of financing for overseas subsidiaries and multinationals.....................................14
7.3.1 Evaluation of internal and external source of finance for multinationals..........................................14
7.3.2 Role of Eurocurrency in international finance..................................................................................14
LO8...........................................................................................................................................................14
8.1 Identifying sources and types of risk in organisations.........................................................................14
8.1.1 Types and sources of risk in organisations........................................................................................14

8.1.3 Methods to deal with risk specific to overseas operation..................................................................15
8.2 Using appropriate techniques to evaluate and manage risks................................................................15
8.2.1 Risk maps and surveys......................................................................................................................15
8.2.2 Contingency plans for dealing with potential risk.............................................................................15
8.2.3 Assessing techniques to manage risk through avoidance, reduction transference and retention.......15
8.3 Preparing and utilising reports of risk management.............................................................................16
8.3.1 Need and value of formal risk management......................................................................................16
8.3.2 Identification of impact of risk in report linked to sensitivity...........................................................16
8.3.3 Content of risk management and way risk is to be managed.............................................................16
Conclusion.................................................................................................................................................16
References.................................................................................................................................................18

Introduction
The smooth operation of an organisation depends upon proper managing of decision on business
operation and allocation of resources and funds. The support of the decision on the business
work helps in the proper availing of organisational success. In the following report the strategic
decision made for the proper achievement of success is dealt with. Along with the rise in the
better requirement of proper availing of resources, the success rate of organisation is depended
upon the interpretation of the financial statements and the resources of the organisation which is
considered to be Wired Retail.
LO1
1.1 Identifying, calculating and interpreting key performance ratios from an organisation’s
financial statements
1.1.1 Interpretation of efficiency, liquidity and financing ratios
The interpretation of the efficiency ratio helps in the better understanding of the efficiency of the
organization in dealing with unforeseen situation. The liquidity ratio marks the situation of the
organization in which the organization is capable enough to pay off the organisational debt.
1.1.2 Interpretation of Investment ratios
Interpretation of the investment ratios helps in the better understanding of the organisation, in
this case Wired Retail investment in the outside market. The achievement of the proper
interpretation of the investment ratio helps in the better understanding of the investment situation
in the organization.
1.1.3 Recommendation of how performance can be improved
The performance in Wired Retail can be improved with the ride in the better allocation of the
cash in the organization. The support of the cash flow analysis in the organisation would also
helps in the betterment of the performance of the organisation
1.3 Using financial statements for evaluating comparative performance
1.3.1 Using of financial statement and online data to compare between competitors and
industrial averages
The using of the financial statement in the context of online data regarding Wired Retail helps in
the better achieving of the success in the interpretation of the organizational operation. The value
of the organisation is better understood by the analysis of the financial statements.
1.3.2 Use of industry comparison information and subscriber intelligence services

The intelligence services in an organisation generally deals with the ideas and the innovation
views of the organisation. The support of the organisation is better managed by the proper usage
of the intelligence services of the organisation
LO2
2.1 Evaluating several methodologies as well as approaches to the costing methods of
services, functions, products and activities
2.1.1 Treatment of direct and indirect cost in costing product and services
Direct costs are the cost incurred directly in the process of production and the indirect costs are
the cost incurred in the operation in directly related to the production sector. Indirectly costs
salaries and direct cost is wages. In order to control costs specific methodology can be followed
under which costing can be done on basis of approach of activity based costing. Under this for
different activities costing can be done separately and activities where cost is highly incurred can
be identified to make cost control decisions.
2.1.2 Description of different cost treatment of job process and contracts
There are mainly three types of job cost contract for the contracts. The fixed price or the lump
sum contracts, time and material contracts and the cost reimbursable contracts are namely the
types of the job cost in relation to the job cost contracts. All these contracts terms and conditions
must be evaluated in proper manner and accordingly cost must be computed. By doing so it can
be ensured that appropriate type of contract is selected in order to keep cost minimum.
2.1.3 Features and consequences of absorption costing
Absorption costing marks per unit cost of the organisation. The fixed cost of the organisation
simply divided by the number of units manufactured. In the absorption costing both fixed and
variable expenses are taken in to account. It is not necessary that every year firm incur fixed cost
in its business. In case fixed cost is not incurred previous year fixed cost will be taken in to
account which does not allowed accurate measurement of costing and profitability of business.
2.2 Using methodology on marginal cost for supporting decision making procedures of
short term
2.2.1 Difference between fixed and variable cost
The costs which are likely to change in the next moment or period is called variable cost and the
cost which are likely to remain the same for the coming years is called the fixed cost. Fixed cost
is incurred on specific day under big deal but variable cost is incurred on daily basis in the

business. This reflect that frequency of expenditure is high in case of variable expenses then
fixed expenses.
2.2.2 Cost-Volume-Profit analysis and short term decision analysis
Table Cost volume profit analysis
Sales 200000
Variable expenses 50000
Contribution 150000
Fixed cost 180
BEP 833.3333
Cost volume profit analysis is one of the most important method that reflect number of units that firm
need to sale in order to cover cost of production. As facts reveal there is need to sale 833 units to cover
variable expenses in business. The cost volume profit analysis is depended on the volume of
product sold on a price in relation to the cost of the product. The short term decision analyses are
based on the calculation related to the changes in the coming or nearby future.
2.2.3 Relevant cost and application to decision making
The cost and the relevance in the decision making are prime factor, as the decision made are
based on the cost spend by the organisation. The support of the organisation is thus provided by
the relevant cost and application.
LO3
3.2 Using methodology on cost management for supporting business excellence, lean
enterprise as well as value chain analysis
On the proper understanding of the values of the lean enterprise the proper, method that can be
availed for the better understanding of the values and the ideas is the secondary form of data
collection. The secondary form of data collection helps the further understanding of the operation
of the lean enterprise and the values of the chain analysis. The use of the research articles by
other writer would helps in the better understanding of the situation and the importance of the
organisation.
3.2.1 Relationship between lean enterprise, business excellence and value chains
As inferred by Liu et al. (2016, p.358), the lean enterprise model helps in the understanding the
smooth operation of the organisation it is related to the business excellence and value chains as it
monitors the objective of the organisation and optimises the enterprise flow. At same time cost
related data must also be gathered in order to keep tracking of expenses consistently in the

business. By doing so cost can be controlled in the business and more control can be maintained
on waste. It keeps in check the useless flow of information. The lean enterprise also helps in the
focusing of the customer and thus leads to the rise in the reputation of the organisation in the
society.
3.2.2 Contribution of financial analysis on cost benefit of quality, throughput accounting,
analysis of waste, value analysis of activity chain
Analysis of the benefits gathered for the cost benefit quality analysis helps in the better
management of the organisational success and the proper understanding of the situation of the
organization operating in. It can be said that strategic management improve to great extent
because financial analysis help firm in evaluating its performance from different sides. Managers
make strategic decisions in respect to firm weak points and try to improve its performance.
Strategic decision may be related to quality control, cost and waste control. However, if firm will
ignore any important factor in analysis then ineffective strategic decision can be made by
managers. It is evident that the rise in the operation of the organisation is well cleared out of the
management. The management of the waste and the analysis of the value in the activity chain
also mark the opportunity of the organisation.
3.2.3 Resource audit of value chain to measure effectiveness of each element and
competitive advantage of each process
Audit plays an important role in the managing of the organisation operation. Resource
management and audit helps in the better understanding of the situation and the allocation of the
resources in the organisation. It is evident that the resource in the organisation needs to be well
allocated for the better achievement of the success and the proper meeting of the organisational
objective.
3.3 Preparing and presenting accounting information of strategic management for
analysing investment in an advanced manufacturing technology as well as supporting
competitive strategy
3.3.1 Identifying place of management accounting by analysing response to strategic
positioning, competitors and competitive advantage
Cost cutting is the one of the importance area where every firm like to place itself in respect to
strategic positioning. This is because if price of product will be low then in that case firm will be
able to offer its product at low price to customers. It is management accounting that provide

relevant inputs to managers in respect to evaluating cost and making relevant decisions. By
identifying areas where work need to be done and taking action on same firm make its strategic
position strong. All these things keep firm one step ahead of rivals and lead to development of
competitive advantage in business. As supported by Durand et al. (2017, p), the competitive
advantages in the organization is well managed and determined by the development in the
organizational process of decision making. The decision making is to be settle in terms of the
position of the organization. Better positioning and proper analysis of the competitors helps in
bringing out the competitive advantage of the organisation.
3.3.2 Appraising investments in the advanced technology
Investments in advanced technology are of prime importance as the growth in the organisation
depends upon the proper implementation of the technology. The investment in the advanced
technology helps in bringing in more production and results in hike revenue. The opportunity
also increases with the broadening of the area in technology field. Thus, strategic decision is to
select whether to investment in an advanced technology related to manufacturing. Investment
must be made in the project but strategic issues must also be identified like it is possible that
advanced technology related to manufacturing acquired by firm but it become obsolete in few
years before completion of life. In that situation biggest challenge is to ensure that asset will be
used more and more within certain time period. If it became obsolete in 3 to 4 years the
investment may go waste. There is rationale behind considering these factors because by doing
so better decision can be made in respect to investment. However, decision would be that
investment must be made in advanced technology that is in current time period. If it became
obsolete shortly then same can be sold to other firm in nation or in foreign country and from
proceeds amount new technology can be acquired. By doing so issue can be eliminated.
3.3.3 Using balanced scorecard for supporting achievement over vision and strategy
As supported by Mechler, (2016, p.2122), the opportunity provided by the usage of the scorecard
is mainly in gaining advantages over the strategies in the organization. The organisational
support is more effectively achieved with the better achievement of the vision and strategies. The
vision and the strategy are correlated to each other as there is strong relation between them in
bringing in the success of the organisation.
LO6
6.1 Appraising projects on capital investment utilising alternative methodologies

6.1.1 Distinction between profit and cash and the relevance to long term investment
proposals
Profit is the earning of an organization from the expenses and the saving of the organisation. The
profit of an organisation is generally of long terms benefits whereas the support of the cash is
current basis and is not much helpful in the organisation. The profit can be used in the
organisation in further future for the operation, but the cash is all in current basis.
Payback period
Payback period means following an approach under which duration after which project
will generate profit is identified. It is one of the important tool that is used for measuring
viability of project.
Benefits Main benefit of payback period method is that it reflect the duration in which investment
can be covered by the firm. Thus, loss making duration in respect to project is identified
by using payback period method.
Limitation Present value concept is not used in the payback period method for valuation of the
project.
Average rate of return
ARR indicate mean return that can be gained on the project if investment is made in
same. It can be said that it is the tool which reflect the overall performance of the project.
Merits Main merit of ARR method is that it reflect mean return that can be earned on project.
Means that overview of project returns is taken by using ARR method.
Demerits It does not reflect that after deducting investment value from cash flows what amount of
average return can be earned.
NPV
NPV reflect the residual value of the project which remain after considering investment
and cash flow value. It is another important method that is used in project evaluation.
Merits

 Present value concept is taken in to account for project valuation and to identify net value
of same.
Demerits
 Calculation process is tough in case of NPV method due to this reason individual that
have non finance background cannot use this technique effectively.
6.1.2 Accounting rate of return, Payback and Net present value of an investment proposals
For analysis purpose entire data is taken from the reports that are available in respect to company.
Payback period
Table 1Calculation of payback period
Project
Initial
investment -800
1 210 -590
2 490 -100
3 686 586
4 882 1468
Average accounting income
Table 2Calculation of ARR
Project
Initial
investment 800
1 210
2 490
3 686
4 882
Total 2268
Average 567
ARR 70.88%
NPV
Table 3Calculation of NPV
Project
Pv @
10% Present value
Initial
investment 800

1 210 0.909 191
2 490 0.826 405
3 686 0.751 515
4 882 0.683 602
Total 1714
NPV 914
6.1.3 Features and advantages of the alternative investment appraisal techniques
The advantages if the investment appraisal technique lies on the smooth understanding of the
investment values and the techniques. On the other hand the investment appraisal technique does
not value money in time. The valuation of time ion aspect of the money would result in the better
achievement of the appraisal techniques.
6.2 Calculating cost of capital of any organisation and explaining limitations of uses
6.2.1 Calculation of equity, preferences and debt
Short term debt 500000
Long term debt 10000000
Total Debt 15000000
Equity in common 400000
Equity in preference 200000
Additional capital paid 600000
Retained earnings 325000
Total share 1525000
Debt Calculations (£)
Net Income (Before tax) 500000
Add: Expenses on Interest 200000
Add: Depreciation of Assets 50000
Add: Amortisation of intangible assets 75000
Earnings before Income
Tax Depreciation and Amortisation 825000
Expenses Interest 500000
Payment as Principles 300000

Debt Services in total 800000
DSCR 1.03
6.2.2 Weighted average cost and cost of capital using market and balance sheet values
Cost of debit
Name Symbol Formula
Assets A Assume consistent 100 100 100 100 100
Tax shield S Dtk fk 0.0 7.5 17.5 30.0 45.0
Enterprise
Value V A+S 100 107.5 117.5 130.0 145.0
Cost of
Debt Ko Assumed 5.0% 6.0% 7.0% 8.0% 9.0%
Assets Beta Consistent 1 1 1 1 1
Return Assets 10% 10% 10% 10% 10%
Equity Beta 1 1.3 1.74 2.36 3.22
Cost of Equity 10% 11.8% 14.4% 18.2% 23.3%
WACC 10% 9.77% 9.79% 10.00%10.34%
6.2.3 Merits and demerits of different approaches of calculating cost of capital
Evaluation of the opportunities and the investments through the strategic investment helps in the
better understanding of the factors that marks the rise in the opportunities of the organisation.
The information gathered from the strategic proposals helps in understanding the manner the
user wishes to continue its investments Maziotis et al. (2016, p.29). The prime merits in the
approach is that it consist of well planned risk and opportunities. On the other hand it assigns,
values to the operation of the organisation, not required much.
6.3 Evaluating opportunities of strategic investment as well as financially appraising
strategic proposals
6.3.1 Suitability of strategic investments in terms of strategic fits and exploitation of core
competencies
On analysis of project that is analysed above it is identified that project is suitable because
project is covering investment in 2 years out of 4 and ARR percentage is above 70% as well as
NPV is positive. On this basis it can be said that project is viable for the firm. This means that

project is feasible and acceptable in nature. Strategic investment in terms of strategic fits helps in
the better finding of the core competencies an organisation possess. As supported by Zineldin
and Vasicheva (2016, p.32), the better understanding of the values and the core competencies in
the organisation provides better opportunities in the supporting of the decision made on the
investments.
6.3.2 Acceptability and feasibility of strategic investment against proposals criteria,
stakeholders expectations and strategic capability
Strategic investment helps in the better understanding of the situation that marks the operation of
the organisation. It is evident that the rise in the strategic investment helps in the better meeting
of the stakeholder’s criteria but may not define the capability of the organization in meeting the
needs.
6.3.3 Qualitative and quantitative issues of strategic proposals
Strategic proposals helps in the better understanding of the situation on a basis required for the
ultimate growth of the organization, which is supported by numeric values, thus known as the
quantitative issue. On the other hand the support of the organization is better understood as the
thematic scene which marks the situation as the general one and helps in the dealing with the
general assumption. Qualitative aspect can be covered in appraisal because project evaluation
methods generate some statistics which reflect viability of the project. In case ARR and NPV of
the project are higher then it can be said that project is viable in nature. Hence, it can be said that
on the basis of relevant values decisions in respect to viability of project can be taken and due to
this reason qualitative aspect need to be included in the appraisal of the project. Data is estimated
from past year cash flows that are related to Wired retail. Thus inputs are sources from the online
databases where company related facts are available. There are some quantitative aspects in
association with project that need to be taken in to consideration for appraisal of project. It can
be observed that facts and figures are analysed by using project evaluation methods like NPV
and IRR. However, there are some quantitative facts that need to be taken in to account for
making decisions. These quantitative aspects may be related to market and customers or end
users with whom project is related. It is very important to develop broad understanding of market
because by doing so it can be identified whether project that seems viable in figures is really
profitable. Good understanding of customers helps firm in determining whether product will be

acceptable or what amount of profit can be gained on sales. Thus, all these qualitative aspects
must be considered or incorporated in appraisal of project.
Conclusion
It is concluded that firm must select the project because its payback is low and ARR as
well as NPV is high. Hence, it can be said that project is viable for the firm. Tools and methods
must be used prudently. All above methods are effective in nature but while using same their
negative points need to be taken in to consideration.
LO7
7.1 Identifying financial risks to operate in any international market
7.1.1 Role and importance of international financial markets
The importance of the international finance is mainly circles round the major issues of the
organisation that deals with the understanding of the operation of the organisation in terms of the
values and progress that really gains the success of the organisation.
7.1.2 Financial risk in the operation in international markets
Financial risk in the organisation is mainly due to the changes in the policies of the organization.
The availability of the organizational finance and the proper management of the organization
deals with the better support of the financial approach. The changes in the international policy on
monetary fund is the prime problems that may be faced by the organization
7.1.3 Approaches for the managing economic, translation and transaction risk in
international operations
Operating exposure and the Transaction exposure the two objectives that lead to the operation of
the organisation in understanding the situation of the organisation and the opportunities the
organisation has after availing all the security measure in the organisation. The information
availed in the organisation is better understood by the proper evaluation of the international
exposure.
7.2 Appraising decisions of international investment
7.2.1 Risk and complexities of capital budgeting in International context
As inferred by Durand et al, (2017, p.5), the risk that the capital budgeting implies on the chance
that the approach lays on. The approach may get into the work of the manager and may lead to
the altering of the views and the ideas of the organisation. The volatile nature of the organisation
could also lead to the change in the production line of the organisation.

7.2.2 Calculation of forward rate and evaluation of a foreign capital project
The evaluation of the foreign capital project is better understood by the setting of the standard in
knowing the purpose behind the project, the quality of the work to be provided by the project,
time scale required for the project and the budget required for the better evaluation of the work.
7.2.3 Indirect and non quantifiable benefits and cost of international investment decision
Quantifiable benefits like the getting better grip over the situation by the use of the investment
decision making is one of the prime objective of the organisation. The non quantifiable benefits
are the availing of the opportunities for the better understanding of the operation of the
organisation (Mechler, 2016. p.2140)
7.3 Evaluating options of financing for overseas subsidiaries and multinationals
7.3.1 Evaluation of internal and external source of finance for multinationals
International source of financing are the source of finance that marks the use of the assets in the
organisation as for the source of finance like the sale of assets and using of the capital reserve.
The external sources of finance are the issues of the shares and leasing of the assets already in
lease. There are multiple sources of finance like equity, debenture and other sources that are
available in the international market. It is necessary to make choice of best source of finance.
There are some merits and demerits that are associated with sources of finance. In case of equity
it can be said that there is flexibility in terms of payment of dividend to the shareholders but cost
is high. This means that there is flexibility in payments but at same time cost is also high.
Similarly, in case of debentures it is necessary to pay interest to debenture holders but finance
cost is very low. Hence, it can be said that there are both positive and negative sides of these
sources of finance and firms by considering their situation must cautiously select any specific
source of finance. There are some of the important demerits of equity and one of them is that it is
very important to pay dividend time to time to investors. Means that in gap of 1 or 2 years atleast
dividend must be paid to the investors. This is because if same will not be done then negative
image of the firm will be created among investors and they will start sale of shares in the market
which will led to decline in share price. All these things have very high negative impact on the
business firm. Hence, there is flexibility in equity but firm have to pay dividend time to time to
investors which may lead to heavy increase in cost of finance.
7.3.2 Role of Eurocurrency in international finance

The euro plays an important role in the world as the denomination instrument of euro remained
unchanged at a value of 26%. In 2010 the value did mark the operation of the organisation in
international basis. The gradual fall and slight rise in the value of euro have marked changes in
the organisation. Funds may be raised by European nations in Euro but fluctuation in currency
value sometimes lead to elevation in finance cost if debt is taken at flexible interest rate burden
of same increased at fast rate. Hence, it can be said that Euro as currency is currently in very
strong position but this does not mean that always it will remain strong and will not negatively
affect firm debt payment liabilities.
LO8
8.1 Identifying sources and types of risk in organisations
8.1.1 Types and sources of risk in organisations
As inferred by Hardy and Maguire (2016, p.82), the market risk along with the interest rate risk
are the common risk associated with the source of risk the organisation generally faces. The
interest risk deals with the security and the bond the organisation dealt with and the market risk
deals with the change and fluctuation in the organisation.
8.1.2 Additional risk involved in international operations
On dealing with the international operations there are rridsk in relation to the political sector,
social sector and most importantly the economic sector of the organisation. The foreign exchange
also plays an important role in the operation of the organization overseas.
8.1.3 Methods to deal with risk specific to overseas operation
As mentioned by Liu et al. (2016, p.367), the overseas operation consist of risk that needs to be
sorted in proper manner that require proper attention and care. To deal with specific risk in an
organisation dealing with the expenses in the overseas, the managers needs to be evaluative in
the bottom up top down evaluation, requiring proper and effective survey of the problem.
8.2 Using appropriate techniques to evaluate and manage risks
Root cause analysis helps in the determination of the problems that make the prime issuance in
the risk that act as the centre of all problems in the organization. The centre problems marks the
better manner to make the difference in the organization.
8.2.1 Risk maps and surveys
As mentioned by Xu et al. (2016, p.S97), the smooth operation of the organisation depends upon
the better mapping and planning of the situation which marks the mitigation of the problems in

the organisation. The availability of the surveys in the organisation helps in the proper availing
of the situation that marks the opportunity which help in the better management of the risk.
8.2.2 Contingency plans for dealing with potential risk
Risk forecasting and preparation of the composite risk index are the aspect which cannot be
avoided in the organisational operation. It is evident that the rise in the organisation can be
verified with the greater support of the organisational manager for the dealing of the risk that
may cause problem from the centre of the operation. The contingency plan helps in the better
management of the organisational problem.
8.2.3 Assessing techniques to manage risk through avoidance, reduction transference and
retention
Avoidance is one the technique that helps in the better managing of the work of the organisation
which keeps the work in the organisation avoiding slightest mistake in the organisation. It is
evident from the organisation that intuition and conscience of the organizational managers. The
reduction comes in the end of the organisational management that helps in the reduction of the
organisation risk.
8.3 Preparing and utilising reports of risk management
8.3.1 Need and value of formal risk management
Risk management is important in operation of an organization, as it supports the organization
with helpline at the time of crisis and other unfavourable situation. Wired retail value risk
management as it act as saviour of the company at the time of need.
8.3.2 Identification of impact of risk in report linked to sensitivity
The identification of risk and the management of the ri in terms of operation of an organization
deals prime importance as the organisation is sensitive towards the rise in the risk in the
organization. Slightest risk in an organisation demands require proper risk management plan for
better result in the success of the organisation.
8.3.3 Content of risk management and way risk is to be managed
Risk can be managed by simple means of accepting the current situation. As supported by Hardy
and Maguire (2016, p.107), the risk can also be managed by sampling avoiding the risk by not
going for the act or work which may get into trouble. Another manner by which risk can be
managed is transferring of risk. The risk can be transferred by the help of the insurance agencies
and other insurance covering agents.

Conclusion
From the above report it can be evidently assumed that the success of the Wired retail is
better developed through the management of the financial book of accounts and the assumption
for the better opportunity in future. In other words it can be said that if accounts are managed
properly then in that case better decisions can be made by the managers of Wired retail in respect
to the business firm. Process is successful because in the report in detail manner project is
evaluated by using project evaluation techniques. Apart from this varied aspects of the project
related methods are discussed in detail. Varied finance risk and aspects of management
accounting are discussed in detail. It can be said that process of project evaluation was
successful. It is also concluded that project selected by the Wired retail is viable for it. This is
because it benefit to the business firm to great extent as profitability is high along with ARR.
However, in order to finance that project while selecting sources of finance firm must show
cautious behaviour because by doing so it according to situation can select one of best source of
finance for its project. It can be said that there is strength in the strategic decision making of the
business firms The success of the organisation is best understood with the help of the success of
the analysing the option an organisation have in making proper opportunity out of the required
options.

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