Types of Risk Essay Example for Free

Types of Risk Essay Additional useful information on types of risk Market or price risk relates to the uncertainty in markets and prices for both inputs (purchased for the production process), and outputs (products and services for sale by the firm). Market/price risk has always been a major problem in most businesses and results from the economic forces of supply and demand. Outcome of these forces are fluctuations in the price for a commodity and/or inputs in the production of that commodity. These fluctuations may be short-term and long-term. The degree of fluctuation and the length of time are critical to their effects on the business. Managers generally anticipate some degree of fluctuation in prices and plan accordingly. These plans may include spreading production and sales over time to average the effect of peaks and troughs in the market, establishing contracts to obtain a fixed price, and pooling sales with other producers to obtain a better market or an averaging of returns from the larger organisation. Low prices in the short term may be tolerated by a business if it has sufficient cash reserves to meet negative financial returns from lower prices. Low commodity prices in the longer term pose serious threats to the viability of the enterprise, and the business, should that enterprise form a major source of income. The growing impact of globalisation and opening of most world economics is also increasing the variability of market and price risk. Remember that this includes both opportunity and potential loss. Production risk is the variability inherent in the firms production processes. This is predominantly the variability of product yield, both in yield quantity and quality. Often quantity is considered but quality is also an important consideration – particularly for products where warranty and service support are provided. Variances in labour, weather, transport and inventory can all reduce (or increase) expected output, or cause delay in the production cycle of any business. Quality reduction, or delay in the production cycle, can further reduce the expected market or price returns for the unit of production. A delay in the production cycle can result in an inferior product or additional time and costs to finish the product, thus reducing the margin of returns from the enterprise. Technological risks: these relate to the uncertainty caused by rapid technological change. A production or investment decision made today may be affected by technical improvements in the future. This is particularly important for structures and high cost, long-life plant. A change in technology may place the business in a less efficient and less competitive situation against its competitors and the marketplace. Similarly not keeping up with technology can also make the business less efficient and less competitive. A business not utilising EFTPOS would find business quite difficult. Some investments can take upward of ten years for the planned commodity to settle into full production (e. g. horticultural products such as fruit or nuts. Agro forestry is a particularly long-term investment, as is mining). Human risks: humans are a key source of risk. Humans are prone to mistakes, misinterpretation, and health problems. The goals and objectives of management form the long- and short-term business plans for the firm. The fact that humans tend to change their goals and objectives often adds to the uncertainties facing the firm. Humans have skills limitations. The introduction of a new process or new technology may require new and sophisticated skills. Humans interpret, learn and respond to situations in different ways. Examples of human risk situations include: health and injury problems, particularly with key personnel. mistakes made in the production process. breakdown in interpersonal relationships within the workforce. misinterpretation in communication. esistance to change. An inability to learn. the existence of vices such as greed and selfishness. fraud, dishonesty, theft. there is also a growing value to a business of the intellectual property/knowledge of its workforce. Legal and social risks: these risks increase in developed society. Laws created to protect people, property and the environment can alter the business playing field. Decisions made and techniques used today may result in l itigation at some future date. There may be a close correlation between human, legal and social risks. For example: the duty of care in respect of others within our legal system. This is important from two management aspects: firstly a business has a responsibility to a persons physical well-being. There is the risk that a person or that persons property may be injured or damaged as the result of the business activities (public liability). Secondly there is a duty of care in respect to business advice that may be given to another. This is important in advice where You know, or should have known, that they might rely on that advice. Consider recent litigation against James Hardie as an example of such risks. The growing importance of OH;S obligations is another example. Some production processes often alter the physical environment, creating the risk of downstream detrimental effects on others (for example chemical spills, effluent disposal). The risk manager must consider environmental risks not only in relation to their direct effect on the business, but also for the potential damage to others property rights and the subsequent potential litigation which may ensue. Government policy risks: government policies help to define both the external and internal environments for the agricultural business. In addition to the monetary, fiscal and trade policies, Commonwealth and State governments have various policies—both general and industry specific. These risks can be particularly stressful on businesses as policy can be quickly introduced and are often unexpected. There can be a considerable production and time lag for the business to respond to the new or altered policy. Financial risks Financial risks result from the uncertainty in the finances of the business. The commercial manager has two sources of finance (capital): their own equity capital, or someone elses capital. Someone elses capital can be acquired through borrowing, leasing, and, in the larger firm, the issuing of shares. The use of non-equity capital creates opportunities for growth in the business. This will occur where additional finance can be used to increase productivity and subsequent income through the purchase of additional assets (resources). For example, funds may be borrowed to purchase additional stock, plant and machinery, or to expand production capacity. Leasing is another form of non-equity capital. In this situation the business acquires the use of additional productive assets, and pays a nominal rent for this usage. Non-equity capital also creates financial costs (liabilities such as rent, interest and capital repayments) which may place the business in financial difficulty. The business may not be able to meet its financial commitments (this is liquidity risk), or indeed become insolvent (where liabilities exceed assets). The use of non-equity capital involves the concept of leverage.

SWOT Analysis for Zoecon, and the Product, ROACH ENDER Essay -- essays

SWOT Analysis for Zoecon, and the Product, ROACH ENDER Main Problem Analysis   Ã‚  Ã‚  Ã‚  Ã‚  While no real problem exists with Zoecon, there is a conflict of interests in regard to how Strike ROACH ENDER is marketed. A meeting was set in which Zoecon executives were to analyze and discuss the test market results for the Strike ROACH ENDER, after it was placed in a consumer test market for six months in four cities representative of the 19-city market where 80 percent of roach insecticides were sold. These four cities included: Charleston, South Carolina; Beaumont, Texas; Charlotte, North Carolina; and New Orleans, Louisiana.   Ã‚  Ã‚  Ã‚  Ã‚  After these six months, executives were to determine which option would benefit Zoecon, resulting in the greatest return on profit. After analyzing the results, executives came up with three different options in which to market Strike ROACH ENDER. These options included:   Ã‚  Ã‚  Ã‚  Ã‚  Option One: was to expand the Strike ROACH ENDER distribution to the 19 cities where Strike FLEA ENDER was being sold. The research conducted by Zoecon's private marketing research group showed that the 19 cities accounted for 80 percent of roach insecticide volume. The executives at Zoecon agreed that the primary direct costs associated with distributing Strike ROACH ENDER to these 19 cities would be a price of $1,016,000. This cost would cover the advertising and promotions for the purpose of creating brand awareness in these 19 cities. The executives also agreed that the set-up/auditing, marketing research, and miscellaneous costs would not be repeated in order to expand distribution.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Option Two: Executives believed that Zoecon should focus on directing their resources to Pest Control Operators, (PCO's). They noted that GENCOR (hydropene) had been greatly received by PCOs in 1984. At the end of this year, many PCOs were promoting GENCOR's benefits to their customers. These Zoecon executives agreed that with an annual investment of $500,000 every year above the 27 percent of sales would be enough for trade advertising and and sales efforts towards accelerating use.   Ã‚  Ã‚  Ã‚  Ã‚  Option Three: Zoecon executives suggested that they pursue opportunities for selling hydropene to the makers of d-Con, Black Flag, and Raid for use in their products. While this strategy had worked in the past for PRECOR (methopene), it could pose as a threat or possible... ... above their competition. Weaknesses:   Ã‚  Ã‚  Ã‚  Ã‚  While there isn't a great deal of weaknesses to this option, executives might still agree that our competition will take advantage of our opportunity for growth in the consumer market. While this may be true, the results could be much worse if Zoecon jumps into the consumer market before gaining the reputation and earnings they would have produced from starting with the PCO's support behind their product. Zoecon has a specially designed product that is backed by strong, scientific research. Even though Zoecon's competitors will have a few years to breathe freely, after developing widespread attention from professionals, and gaining competitive edge, Zoecon is bound to quickly surprise the consumer market in the future. Threats:   Ã‚  Ã‚  Ã‚  Ã‚  The only potential threats to this option is new innovations, or a lack of timing. Zoecon's patents will eventually time out, which will give competition access to the controlled compounds that Zoecon formulated. Although this threat could potentially destroy Zoecon's existence, the chances of this happening are very slim to nearly impossible unless every one of their plans fail in the PCO market.

The Boy Who Saves Baseball

Although this small town Is loved by many, Tolland has really gone down and a lot f the town's leaders want to sell Dilatation land to developers who say they will turn the run down community into new homes, stores, and bigger and better things. Although most of the land has already been sold, Doc Alternative, a huge baseball fan, hasn't agreed to sell his land. This land happens to be where the baseball park sits. After being cornered by the mayor who begs him to sell the property and the historical group who begs him to not sell the land, Doc decides that he will keep the field If the Wildcats can beat their rival team.If the Wildcats lose, he will sell the land to the developers who will tear up the field to build new buildings. The Wildcats are scared of losing the challenge. The main reason they are worried is that they cannot hit or catch and the game is only five days away. Dante Del Goat, a former player of the San Diego Padres, decides to coach the team. At the first practic e a 12 year old kid named Cruz De la Cruz walks up. No one knows him, but Cruz quickly makes friends with the team.He can hit every ball that comes his ay and can catch every ball that Is hit or thrown to him. More Importantly, he helps build the team's confidence, courage, and a new found love for the game. After a week of hard and unusual training, the team is feeling good about the big game, but Cruz De la Cruz disappears. The team quickly realizes that it is up to them to win the game. Worst yet, with Cruz gone, Tom has to play. He is the worst player and as if things couldn't get worse, he has to pitch because Maria, the main pitcher has been Injured.After a long and hard game, the Wildcats manage to win, but their excitement was overcome by grief when they found out that Doc Alternative has had a heart attack and died. The team, especially Tom thinks that the field will surely not be saved no matter what. In the end, Tom finds out that Doc wanted him to inherit his estate when he died. The baseball field is safe now because of the win and the generosity of Doc Alternative. The Boy Who Saves Baseball By Sharron The Boy Who Saved Baseball begins by introducing its readers to a fun lovingAlthough this small town is loved by many, Dilatation has really gone down and a lot baseball fan, hasn't agreed to sell his land. This land happens to be where the he will keep the field if the Wildcats can beat their rival team. If the Wildcats lose, he will sell the land to the developers who will tear up the field to build new buildings. Way and can catch every ball that is hit or thrown to him. More importantly, he helps build the team's confidence, courage, and a new found love for the game. Has been injured.

Trichotillomania Onset Pregnancy - 699 Words

Introduction: Trichotillomania is characterized by recurrent episodes of hair pulling behavior leading to noticeable loss of hair, increasing tension before hair-pulling or while coping with the urge to pull out hair, taking pleasure or a sense of relief while pulling out hair, and social, occupational, and functional impairment1. Trichotillomania can involve any area in the body; however, the most common areas are the scalp, followed by the eyebrows and eyelashes in children and in adults2. The seriousness of the pulling behavior is perceived over time, and the disease exhibits a chronic course and it is resistant to therapy3. It has been reported that patients with trichotillomania often did not feel pain while pulling out hair, followed a particular pattern of hair-pulling, and often chose strands with unusual appearance, and exhibit repetitive behavior such as engaging oral stimulation after hair-pulling4-5. Some studies have suggested that trichotillomania had many common features with obsessive compulsive disorder4-5.Here we discuss a patient with trichotillomania onset pregnanacy case. Case : KD is a 19-years-old female, married, secondary school graduate who is currently unemployed. The patient was admitted to the juvenile outpatient clinic accompanied by her parents with the complaints of anxiety and pulling out eyebrow that lasted for 2 weeks. It was realized that the patient did not have similar past complaints, or she has not been admitted to the psychiatryShow MoreRelatedEssay on Psychology Adrian Monk and OCD3129 Words   |  13 Pagesstressful event such as pregnancy, childbirth, or family conflict. It may be closely associated with depression, with the disorder developing soon after a bout of depression or the depression developing as a result of the disorder. Men and women are equally affected. A fairly high proportion (as much as 50 percent) do not marry (Baldridge 2001). Although Obsessive-Compulsive Disorder usually begins in adolescence or early adulthood, it may begin in childhood. Modal age at onset is earlier in malesRead MoreOcd - Symptoms, Causes, T reatment131367 Words   |  526 Pagesand 2% of the general population. A Diagnostic Enigma 9 Gender, Age, and Onset Most studies report a slightly greater incidence of OCD in women. In their review, Rasmussen and Eisen (1992) noted that 53% of their OCD sample were women, a gender difference confirmed in the epidemiological research (Andrews et al., 2001; Karno Golding, 1991; Kringlen et al., 2001). Men typically have an earlier age of onset than women and therefore begin treatment at a younger age (e.g., Lensi et al., 1996;