Financial Management: Share Valuation and Risk Management Report

This report provides an analysis of share valuation methods and risk management strategies. It begins by valuing shares using the Dividend Discount Model (DDM) and Gordon Growth Model, considering different dividend payout ratios and growth rates. The report then delves into risk management, defining investment risk and discussing how companies navigate macroeconomic and global factors to mitigate potential downsides. It explores risk management in various sectors, including automotive and pharmaceutical companies, and highlights the importance of strategic decision-making, such as revaluation and analysis, to control risk. The report also discusses the impact of risk management on financial performance and the use of hedging strategies. Finally, the report outlines the roles of financial risk managers and the importance of communicating across all organizational sections to reduce risk and gain a competitive advantage.