Risk Categories

This is the initial assignment. I just need 2 responses to students. I included several in the Word document.

Chapter 14 and Chapter 25

Select Chapter 14 OR Chapter 25. Select ONE of the numbeed topics from the list related to the chapter you selected. Only numbered question needs to be addressed, not one from each chapter. Using the textbook and at least one credible reference, explain the topic to the class. You can use Word, PPT, images and other tools that will enhance the learning experience.

Chapter 25

Locate one scholarly journal article about EFA from the SPC Library and provide a summary of the article.
Explain Strategic Risk Management Framework
Define and demonstrate Modern Portfolio Theory (MPT)
Explain the intended use of EFA identified in the chapter and provide an example outside of the chapter.
What are the shortcomings/limitations of MPT?
Discuss the four types of informational processing errors.
Discuss the four types of behavior biases.
Chapter 14

Select three of the following risk categories. Provide definitions and examples.
Strategic Risks
Insurance Risks
Market Risks
Credit Risks
Liquidity Risks
Operational Risks
Reputation Risks

Required:

Provide an initial posting of 400 to 600 words by Thursday. Then provide two responses of at least 100 words each that extend or provide alternate views for the initial posts of at least two students by Sunday. Repetition of the questions and the reference list are not included in the word count.
Do not access the threads until you are ready to post your entire answer. If you make a mistake, do not edit the response; reply to your own answer with the revision.
Use formal writing. Errors will reduce your grade.
Respond to the initial posts of at least two students, extending the discussion by adding new insights, different examples from your experience, or from other sources. Add value to responses to classmates and provide support in the form of a reference and citation in at least one of the responses. Videos, articles and information from other credible sources are useful to accomplish this part.
Apply critical thinking. Probing questions or challenging assumptions are strongly encouraged for maximum points. Agreement, quoting other learners, or repeating the case content will count as zero words and zero points. It’s great to ask questions in your responses to classmates, but also provide substance and do not ask questions after 8pm on Sunday, as you cannot expect responses to them that late on the last day of class for the week.
The textbook is not considered common knowledge. If you use information from the book in your answer, citation to the book is required.
Post answers directly in the discussion box instead of attaching documents.

ANSWER

Risk Categories Responses

Hello Woodard, indeed, understanding the different risks in an organization enables one to be prepared to deal with the risks and take preventative measures against the risks. Operational risks can be quite a problem in any organization. This is because the customers are likely to blame the organization for poor planning, and thus, it is important for organizations to e prepared for such risks as it enables them to be better prepared. An organization needs to identify possible operational risks and take the necessary steps to ensure that these risks do not stop the organization from operating or they do not lead to losses. Reputational risks are also bad for business because they place an organization in a place where it cannot be trusted. Reputational risks are the most common in the world today, and thus, the need for companies to ensure they are prepared to save their reputation.

Response 2

Hello Hunt, I agree that market risks are involved in all investment decisions. There is always a possibility that the market might be poorly performing and thus leading to losses. Therefore, the market risk is not always dependent on the product but on the market. For example, the market is experiencing fluctuations right now, and any investment made will be faced with market risks. I also believe that reputation risks are dangerous because they are hard to predict. Reputation risks are tied to the feelings of the people, and if one fails to appeal to these feelings, they could lead to a company going bankrupt. Companies should do everything in their power to maintain their reputation because once an organization’s reputation suffers, it is hard to rise again.