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Types of Risk and Risk Management Functions of Equitable Funding Ltd : Report

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Added on  2020-07-22

Types of Risk and Risk Management Functions of Equitable Funding Ltd : Report

   Added on 2020-07-22

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RISK MANAGEMENT
Types of Risk and Risk Management Functions of Equitable Funding Ltd : Report_1
Table of ContentsINTRODUCTION ..........................................................................................................................3TASK 1 : Summary ........................................................................................................................31.1 The impact of different types of risk on organisations.....................................................31.2 The activities which are high risk in different sectors of the economy...........................4TASK 2 : Reference guide for junior colleagues.............................................................................42.1 Business risk ....................................................................................................................42.2 The role of the risk management function in business....................................................52.3 The role of business functions in the management of risk. .............................................6TASK 3............................................................................................................................................63.1 Evaluation the vulnerability of organisations to breaks in continuity..............................63.2 Approaches to crisis management and business continuity planning..............................7TASK 4............................................................................................................................................84.1 Assessment of the activities for the company to identify the probability of risks...........84.2 Evaluation of the potential impact of the identified risks to the business........................84.3 Risk management plan to help mitigate potential risks............................................................9Risk mitigation.....................................................................................................................10Conclusion ....................................................................................................................................10REFERENCES .............................................................................................................................11Books and Journal ...............................................................................................................11
Types of Risk and Risk Management Functions of Equitable Funding Ltd : Report_2
INTRODUCTION Risk is a part of our lives, every activity or task we perform has some risk involved.Therefore, each and every organisation have various risk involved in their business operation.This report identify and determine the various types of risk and the risk management functions ofEquitable Funding Ltd. The study will describe the ways in which the company assess andmanage the risk using different approaches of risk management. The report will also include thestrategies, drivers and impact of risks on a business and its functions. Furthermore, theapproaches of crisis management and business continuity will be described in the report. TASK 1 : Summary 1.1 The impact of different types of risk on organisationsThere are many types of risk involved within a business and its functions, these riskshave a great impact on the organisation's performance and profitability. The Equitable fundinggets affected with different risks which are as described below - Strategic risk – Every organisation or company have a business plan based on the goals tobe achieved which is also known as business strategy. The various changes in thebusiness environment can make the business plan outdated or decrease the effectivenessof the strategies this is the strategic risks. The company gets highly effected with this riskas the plan becomes less effective and make the company to struggle in achieving itsbusiness objectives and goals( Wiengarten and et.al, 2016).Compliance risk – Another risk involved in the Equitable funding is the risk ofcompliance or laws and regulations. Every company or organisation are applied withcertain laws and regulation that they need follow or apply in their business practices. Thechange in the laws is a major risk for an organisation. It forces changing the businessoperations and even the structure of the entire company. Operational risks – These risks refers to an issue or failure of the daily business activitiesand operations. Operations of an organisation can fail due to any reason such as technicalissues, employee strike etc. These risk also have a great impact on the overall operationalarea of the business. For example is there is failure in the production area. The wholefunctional department will face the issue and it will stop the flow of the businessoperations.
Types of Risk and Risk Management Functions of Equitable Funding Ltd : Report_3
1.2 The activities which are high risk in different sectors of the economy.Risk is a common element involved in each and every business in almost every sector.These risks are identified and analysed to reduce the rate of loss. The risk in different sectors areas mentioned below -Hospitality sector – The hospitality sector is a known to be a great part of the economy ofa country. The hospitality sector includes various hotels which provides effective servicesto the guests or customers. There is a major risk in this sector which is the data privacy.The hotels have a lot of information about their guests which needed to be protected bycyber crime or theft. The cyber attack can be a major harm to the hospitalitysector(Bromiley and et.al, 2015).Banking sector – The banking sector also involves many risks such as Market risks,credit risks, Liquidity risk, Reputation risk etc. The change in equity price, foreignexchange, interest rates etc are affecting the functionality of the banking sector which ishigh risk for the banking organisations.Manufacturing industry – The manufacturing industry is also an important of theeconomy. The manufacturing sector also have a wide range of risks involved in thebusiness operations. Conflict mineral disclosure which drives regulatory risks,Acquisitions and mergers risks which increases competition, Intellectual propertyprotection enhance data security risks etc are some high risks involved in themanufacturing sector. TASK 2 : Reference guide for junior colleagues2.1 Business risk A business risk refers to the possibility an organisation may have lower than analysedprofits and experience a loss rather than generating profit. These risks are affected by variouselements such as per-unit price, sales volume, competition, sale volume etc. Nature of business risksThe nature of various risks can be described with relation to its various features which areas described below -
Types of Risk and Risk Management Functions of Equitable Funding Ltd : Report_4

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