Financial Risk: Determining and Managing Risk Exposure Strategies

This report examines risk exposure management strategies within financial services, focusing on developing and implementing effective risk management plans. Activity 1 details the creation of a risk management strategy, covering risk identification, assessment criteria, and acceptance/rejection protocols. It emphasizes the importance of compliance with relevant legislation like the Corporations Act 2001 and the Insurance Contracts Act 1984. Activity 2 outlines an implementation plan, including work breakdown structures, resource identification, and procedures for staff. The report also addresses risk acceptability factors, data collection methods, and the integration of risk management principles throughout an organization. The research task includes questions on risk assessment, principles of risk management, and benchmarks for evaluating risk management effectiveness, highlighting the need for continuous improvement and adaptation to dynamic changes. Desklib offers more resources for students.

Determine And Manage Risk
Exposure Strategies

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
ACTIVITY 1...................................................................................................................................3
1. Develop a risk management strategy.................................................................................3
2. Strategy for portfolio managers.........................................................................................3
3. To consider develop the risk management strategy...........................................................4
4. Collate all up-to-date information in a form that is suitable for analysis...................4
5. The risk acceptability factors..........................................................................................4
6. Develop risk acceptance and rejection criteria..................................................................5
7. The risk acceptance strategy..............................................................................................5
8. Finalised the risk acceptance criteria.................................................................................6
9. Any other requirement for the risk assessment.................................................................6
Research Task and Written/Oral Questions.....................................................................................6
ACTIVITY 2.................................................................................................................................11
Develop an implementation plan...............................................................................................11
Work breakdown structure........................................................................................................12
Identify the resources.................................................................................................................13
Develop procedures for staff members......................................................................................13
Evaluate the implementation if the risk management strategy..................................................15
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Risk exposure management means the day-to-day management of the risk that could
planned. It could be more responsibility for the manager to monitor the exposure and that could
be follow and keep the policies and procedure which should be the probability of loss increases.
This report will examined about the two activity while in one activity this could be about how
the risk management strategy for financial services that could be maintain and how usually this
could work. Along with this various process which could help for keeping the strategy in control
this assessment that aimed for setting goals and objective. Moreover, explain the second activity
about the risk management strategy which could help for implementation plan and keeping out
some of the better growth and development.
MAIN BODY
ACTIVITY 1
1. Develop a risk management strategy
While this could take some of the high risk for financial investment and insurance
products with having the economic slowdown, damage the company reputation, failure to
innovate, failure to attract/retain talent, increasing competition. Many of the risk exposure
management strategies carry paper amount of insurance, diversify investment, maintain the
accounts and existing strategy of every investment that could make the emergency funds
(Shaktawat and Vadhera, 2021). This could be communicate through using the start with having
vision and keeping them for powerful tools about the communication, set clear and measurable
objective, outline more about the clear expectation and milestones for which the manager can
easily communicate. Along with this managing personal risk assessment strategies which could
make them with avoid it, reduce it, accept it and transfer it. This could make the risk
management for reducing and make the business for running with having some proper
management.
2. Strategy for portfolio managers
The portfolio manager that could have their aimed for knowing about how usually this
could work and managing their terms and policies. While this could use some of the investing
approaches as socially investing, diversified assets classes portfolio, conservative income
portfolio (Hubbard, 2020). The strategy for knowing about how usually this could work and

make some of the business activities high and various types of business such as financial services
can be targeted and many of the financial services which cannot be targeted for the business.
This have such kind of things which must be including with their various activities and make
sure for having their high estimation in completion over the portfolio about some business
targeted for the financial management.
3. To consider develop the risk management strategy
For identifying the acts for risk management strategy the company must be required for
applying industry and operation. This could led them corporations act 2001 and insurance
contracts act 1984. Having such kind of acts this must be important for them in working with
laws and regulation towards the industry sector requirement compliance. The main purpose of
the organization policies and procedure for risk management figures, percentage which could be
taken performance about how usually this could work (Ma, Wang and Chan, 2020). Relevant
industry risk that could be taken from the external of financial services, and usually this could be
control while by having the public relation, proper communication, solving about compliance
issues and inability to recoup monies spent. Determining more about risk mitigation process
while by observing, monitoring, transference risk, avoidance risk. This could have the
assessment criteria such as risk treatment, consequences and make the proper risk estimation
about the financial services and product.
4. Collate all up-to-date information in a form that is suitable for analysis
Identification for about the collection data which could keep the opportunities to conduct
the internal and external process. Conduct the review about all the policies, procedures
applicable to employee and another appropriate audience. While having such the data that have
been collected from the qualitative and quantitative methods from the proper estimation and
make sure for having high estimation (Drljevic, Aranda and Stantchev, 2020). Along with this
that could also increasing some high process and keeping their sources for working some high
systematic barriers. This must be also important for knowing about how usually for working with
many new things and keeping some more better performance about the work efficiency.
5. The risk acceptability factors
As there are various methods for keeping some high economic, safety and environmental
damage with respect safety. While having such things this must be important for knowing about
how this could work and managing their high effective concepts while for developing with their

system. As many of things that could make the business for succession by work environment,
system for being work, using the various ways for having some high issues and make the
decision for working with proper aimed (Ritter and Pedersen, 2020). The high range of
foreseeable condition for which the proper estimation and keeping some high resources for
working their manager through which employee and various concepts sources that could harm.
The manager should also understand about how this could work for them and how this could also
act for them and make sure for having their more possible things in developing their growth and
knowledge with various skills.
6. Develop risk acceptance and rejection criteria
The risk criteria which could be required for knowing about the rejection and acceptance
that could be based on some high resources. Magnitude and volatility with keeping the relation in
financial risk speaks to the level about amount and likelihood changes and how change must be
required for them. While having such things this must be important for them and make their
people essential ensure that range strict terms and condition are being created for risk acceptance
(Chang and et.al., 2020). Along with this also make the business for working with many
effective things and make sure for having their proper collection of data and strict risk
assessment must be required. Parameters of risk acceptance, variables that cannot acceptable,
approvals and compliance for keeping their rejection managed. Change management strategies
and implementation about their system which could altering to make some of the damages.
7. The risk acceptance strategy
The document which must be clear and make them for outline of the risk acceptance
strategy. Related to procedures about which could make their estimation and how usually this
could work for them and keeping them with many things. Related action plan and information
which could keep them related for working and might be make sure for having their policies and
procedures for which the proper information related for submission about the document which
could make the high estimation (Nguyen and Nguyen, 2020). Along with this keeping their more
proper resources for which the manager needs to keep some reporting structure and recording
structure, learning development opportunities that could make the business and make sure
bringing more sources this could led them for monitoring structure.

8. Finalised the risk acceptance criteria
The feedback that have been finalised on risk assessment for which the manager and various
other people in project can easily manage them. While having such things this must be also
important for feedback finalised which could keep the proper estimation in future growth. This
could also led them for working that could keep some trainer and assessor for feedback
(Hunziker, 2021). Along with this could make sure for having their more growth and developed
about how usually this could work for them and make sure about their more achievement about
the completion of work. As project manager should also understand about how this could
manage their work and make sure how this could help for taking their feedback about the work
as per rating their work.
9. Any other requirement for the risk assessment
For being completion of the risk assessment many of the things are be required such as
technology, software, office equipment regulation, legislation, some relevant codes of practice.
While having such things this must be also important for knowing about how this could work
and managing their high effective things for which the manager must be required for keeping
their completion (Boudlaie and et.al., 2020). While having such kind of things many more
equipment such as relevant Australian standards which are to be required and keeping with them
some more measure things. Along with this make sure for having their more growth and
development about many things that are to be required for them and bringing out many concepts
how eventually this could work for them. The workplace environment should also understand
about those acts which could create them for working with safe environment and keeping some
high resources for their employee.
Research Task and Written/Oral Questions
1. Risk assessment and criteria that could be based on the level of risk, magnitude and
volatility. While this could keep more about the financial risk speaks of the level
uncertainty and amount of likelihood for changing and how this risk is being likely to
change.
2. The eleven principles of risk management:
 Risk management should be integrated throughout the organization system and strcture.
 Create and protect value

 Be tailored and created the specific organization
 Be inclusive and transparent
 Risk management should be take through decision process
 Address the uncertainty implicitly
 Be structured, systematic and timely
 This could be based on having the best information available
 While for taking the account with range of organizational factor such as needs and
cultural.
 facilitate continual improvement for the organization
 be responsive to dynamic and changes.
3. The examination of risk is being highly educated and certified professional statistician.
This could also led for having the models for changing or managing the statistical
financial uncertainty by making the educated predication related to future aspects. Along
with this including government agencies, insurance, corporation, banks and actually
designing for the optimal insurance.
4. Here are some of benchmarks such as:
 Budget review tools
 Risk assessment
 Performance review tools
 Internal audit
 Analysis of performance
 Analysis of data
 Productivity analysis
 360 analysis
5. Here are some of potential business risk:
 Liquidity
 Nature of business
 Operational risk
 Insurance underwriting risk

 Proper markets
 Quality of strategy
 Market risk
 Credit risk
6. Various sources of information such as primary and secondary methods, references
books, government publication. While having such kind of things this must be important
for knowing about how usually this could act and make sure for having the proper
collection of information or gathering more high estimation.
7. The key pieces of it relating to one of the following:
 Insurance contracts:-
This is document which represent the agreement between an insurance company and the
insured. While by keeping the limitation which have the specify policy limits, such as
fixing more about the insurance company will pay, extensions etc.
 Privacy:-
The privacy act of 1974, the protection more towards the information that could held by
the federal government by preventing more about unauthorized disclosures of such kind
of various information.
 Consumer protection:-
This could be seeks with right to protect against the marketing of goods which are being
hazardous of property and life. Along with this having information about the quality,
potency, purity and standard and price of goods.
 Corporations law:-
The securities act of 1933, this could keep about law, regulated about how corporate
securities must kept with issued or sold.
8. Mitigation is the action which could taken the prevention or reducing the risk to life,
property economic and social activity and this could also led with natural resources.
Example, risk mapping enforcement and adoption of land using and zoning some
practices implementation and enforcing high building codes.

9. While this could also include the careless staff and management attitudes towards
workplace violence prevention, lack of staff training and preparedness, cumbersome
policies that could be reporting and managing crisis. Along with this also work for
inadequate security procedures ad protocols.
10. In such kind of things this must be required for having the determination about the
identification what could cause the injury or illness for the business, taking some high
action to eliminate the risk which could be possible or not. Moreover, describing more
about that could led them for someone harmed and how seriously the risk assessment
must be taken.
11. Risk acceptance criteria that could be based on varying about the work, decision about
some acceptable risk. While having such things this could also led them for knowing
about how usually this could work and try to ensure more about their system. Not for
having pose of incremental risk and avoided risk.
12. The board of director which could represents the membership of organization. This could
also sets the policies, values, procedures and also keeping the long term planning to meet
out some mission of the given organization. While having such things this must be also
important for knowing about how this could acts and bring more some better sums in
governance structure.
13. The basis methods of risk management such as: retention, avoidance, reduction, loss
prevention, and transferring. While this could all apply for having the requirement bout
how usually this could act and mentioning some high risk acceptance for working with
some more better risk factor.
14. This could be basically divided into four risk assessment such as : assets identification,
risk likelihood and impact, cost of solution and risk analysis. While having such things

that could led them for working with some more high estimation and keeping the risk
assessment for knowing about some more concepts.
15. Feedback can be collected by using the various websites and surveys web app, feedback
button, emails-embedded and link surveys, mobile surveys app and chat surveys. This
could also help the employee and customer for knowing about some more new strategies
through which the business can effectively take place.
16. Work breakdown structure, is the tool which can be used for programme, projects and
even keeping initiative to understanding about work that can be done to successfully
produce. This can be use for defining and organizing the work which might be required
with some high estimation.
17. The five main categories such as operation, budget, schedule, business and technical.
This could also involve with having some more high estimation and also try to ensure
about what some ethics issues will be solve some of their problem.
18. While having the action plan which must be required with well-defined description of the
goals to be achieved, people who will change of carrying out reach task, resources which
could be required for completing the tasks. Along with this having many new things and
make sure for having their more impacts over through which many effective concepts can
take place.
19. Firstly, identifying about the purpose of communication, what types of audience basically
this could be required for making the communication in organization. Secondly, plan and
design messages what have been used in communicate and make sure about the obstacles
plan and emergencies used in designing the projects. While creating the action plan and
keeping some high source for projects making.
20. It could be important for knowing about which allow the acceptance identifying potential
risk ahead of time. It could also allow business for reacting accordingly and minimize the

prevention from the given time and managing some high source. This also using the risk
management, a business cannot successfully define more about objective.
21. The use of these approaches which have been environmental management that could
discuss risk evaluation attempts which could defined about the estimated risk actually
means to people concerned for the affected by risk. Along with this keeping the high
sources and evaluation will be high consideration of how people perceive risk.
22. While for gathering information and reviewing about some of the existing document for
helps in understanding about the history. This could also keep some of the high
estimation and make sure for operation about how the program which are evaluating and
the organization that could take it for operating.
ACTIVITY 2
Develop an implementation plan
Management of the implementation strategy
Strategic implementation refer to the process of executing about for keeping the plans
and strategies. These process can also keep the process estimation and try to bring out some
more aims for achieving with long term goals within the organization (Lameijer and et.al., 2021).
In keeping firm develops and make sure for having their high sources it could utilizes and
integrates new process into the structure of an organization.
Monitoring methods
While this could keep through using the observation, monitoring work performance and
output, employee measuring before and after changing. This could also keep the methods in
using many other employee surveys about their issues and problem while through which this
have been clear that they are not facing any issues or benchmarking about the other work units.
Evaluation methods
As the organization need to keep the goals and objective through which they can easily
make sure for knowing about evaluation measure and this could also help them for analyse the
strength and weakness of the employee (Brauer, Dumesnil and Campbell, 2021). Along with this

process based evaluation that could keep achieved and make sure for having outcomes based
evaluation. This could also keep them for working for risk management strategy.
Work breakdown structure
pprojec Resource
manageme
nt
Performing
management
and tracking
Project
financial
managemen
t
Resources
acquisition
Budget and
financial
management
Project schedule
and time lines
Continual
improvement
management
Project
management
requirements
Assessing
project risk
Resource
managemen
High
project
success
rates
Effective
change
managem
ent
Improved
communica
tion
Reduce
exposure
Address
regulatory
issues
Minimize
impact
Employee
burnout
Escalated
project risk
Absence
succession
planning
Check it often
Measure
both short
and long
term goals
Capital budget
Capital
structure
Working capital
management
Acquire
resources
Determine
required
resources
Control
resources
usage
Control stock
Meet tax
deadlines
Financial report
Profits and loss
sheet
Task
Milestones
Dependencies
Develop
strategies
Lead activities
Provide
mentorship

Identify the resources
Human Resources
This could be seems that risk management strategy this could be required with having the
proper resources, skills and experience while through which they can maintain business (Johnson
and Swedlow, 2021). Along with this business can easily get some of the better employee and
make sure about how human resources make the hiring while by using some of the strategy and
this could keep the growth and developments for the organization.
Financial
In this the organization needed to share more cash, profit and loss, balance sheet and
many more things through which the business for risk management that could be improve. Along
with this financial report which could be important for knowing about how usually this could
work and try to manage or improve the work which have been given by the report.
Technological
In having such kind of things various types of technological things that can be used and
this could be important for knowing about how this could make and developed. While designed
software, information management system and various other additional equipments must be
required. Along with this technology which play the important role and this could also keep the
benefits for working and putting some of the essential things for the risk management strategy.
Physical
While in making risk management strategy various things which are to be required and
this could important for the managing risk (Velandia Ramos, 2021). This could also led them for
knowing about how usually this keep them for working risk managing and this make the
business and helpful supplies, building and office space etc.
Reputation
This can be marketing and make the public relation budget this could keep them for
working and make sure for having needs for maintaining the order perception in organization.
Develop procedures for staff members
Financial plans
Monetary arranging unremitting cycle that will decrease worry over cash, support present
supplies and assist with building savings for tired out objectives, similar to retirement. Monetary
arranging is significant in light fact that it permits to take plus of resources, and guarantees meet

future objectives. Monetary arranging isn't only for the rich: creating guide for monetary future is
future for everybody. This can make a monetary agreement yourself, or can find support from
monetary arranging proficient. Because of online administrations like getting help with monetary
arrange is more sensible and unbolt than any other time.
Promotional strategies
One of most momentous business contemplations period is specialization and specialty
focusing on. This could also seems that examination has over and over shown that the quickest
developing firms will general be experts in a thoroughly designated specialty. This ought to be a
space of the business that see completely, space where can turn into an unquestionable master
and pioneer. Specialization puts forth all of promoting attempts simpler, on the grounds that it
will universal typify precisely what do and rapidly recognize you from the opposition.
Resource requirements
Representative burnout is viewed more general authoritative test. Numerous directors
proceed to over-designate assets without having total deceivability of their current appointments
and accessibility. Accordingly, assets knowledge pressure at work and ultimately burnout.
Besides, the shortfall of lawful apparatus can cause double appointments that add asset over-
burdening, gravely influence worker confidence prompt diminish representative pledge and
fulfilment.
Specific actions, initiatives and tasks to be undertaken
While having the risk action and various tasks which could be required to follow and how
basically this must be important for working with having the steps which could reduce the
likelihood or impact of an identification risk. This could make sure about how usually this could
work and reduce the time for completion for providing lower cost than originality planned.
Along with this also keeping the opportunities or business risk and try to outsourcing or
awarding the handling of risk with third party.
Staffing/responsibility requirements and arrangements
Worker roles and responsibility for knowing about the problems and the details of that really
happens and how they can perform their task or activities. Employer role while for carefully
prepare what they are going to do in order to meet their responsibility to make the risk
assessments. As this could also include the process of deciding on the preventive and protective
measures to put the places.

Time lines
this could be given by the employee or project manager who can usually look out for the
completion about the project and try to keep the time as 2 months or 3 months for achieving the
target.
Communication strategy
This ought aware of business and functional risk since communication might be normal
to resolve the issues they raise. Hazard the executives involve the way of life, cycles and designs
for successfully supervision possible freedoms and aggressive impacts. The job hazard
executives is to recognize possible dangers, lessen the odds of those dangers becoming reality,
and to moderate size episode if chances do change into the real world.
Risk management issues and strategies
By executing danger board plan and considering the unlike expected dangers or occasion
before they happen, an group can set aside cash and sheltered their future. This grounds that
powerful risk board plan will assist an organization with building up strategies to stay away from
possible dangers, limit their effect should they happen and adapt to outcomes. This capacity to
understand and control hazard empower associations more sure about their business choices.
Evaluate the implementation if the risk management strategy
The most common way recognize and investigating dangers that face known as hazard
appraisal. By surveying hazards can be well mindful of where exposure encompassing occasions
or results exists and unique steps that can be taken ensure association, individuals and resources
concerned (Lahane and Kant, 2021). How this talented and degree of detail which is considered
can shift between associations. As rule, where staff or volunteers have an extra involved job in
the association, the Management Committee may not do the danger assessment themselves.
CONCLUSION
From the above report it had been concluded that, risk management strategy that could be
required for having the proper estimation about how usually this could work and manage the
estimation about the given process. While having such things this must be essential for taking
about the communication plan and various other strategy which could keep the high resources.
While this have been also seems that many of the risk assessment which could keep the resource
available and this must be important for taking some of the high measure terms and make sure

about how usually this could be acquired for taking some better steps in developing the business
with having the proper strategy.

REFERENCES
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