Risk Management Case Study Example | Topics and Well Written Essays - 1000 words

Risk Management - Case break down ExampleThe first concern atomic number 18a is the president and founder decision to hand shareholding to family members. This may be seen as a measure to safeguard the fellowships interests and those of the main shareholders, it also poses significant scourge as it limits the companys access to additional capital, the assumption here being that any amounts that the company may pretend at the time are already committed to improving the business. Another soaring risk is the exposure of the companys assets as presented in the case, the companys total assets are valued at 52.6 million dollars. In case these assets are destroyed by any subject of occurrence, it would cost the company about $73.5 million to replace them. It is definite that such loss would also hand over to a loss of significant information stored in the equipment. Other costs that the company should consider is by means of disruption - in any case, that there is such an eventuali ty the companys operations ordain definitely be disrupted. The entire period of disruption represents a significant loss of company gross. that another major point of concern is the companys revenue. The case indicates that the companys revenue has been on the rise for the past two years and dipped in the third year by a significant amount - 15 million. A quarter of this revenue is generated by a sensation employee, which implies that the firm is overly reliant on a single or a few individuals. This implies verbosity as well as inefficiency which are significant risks. The greatest risk in this case is the particular that if this individual leaves the company, then this hugely affects the companys revenue stream (Hamilton, 2004). This will definitely have a spiral effect as the company operations rely on the revenue generated by its activities. The last significant threat to the company is loss of market share. The case indicates that the firm