Response Requirements:

Must:

• Be 2 paragraphs in length
• Be supported by the required textbook and one additional reference

Points deducted if the submission: 

• Does not use the required textbook as one of the two reference sources 

  You CANNOT use Wikipedia, LinkedIn articles, blogs, paid vendors, certification websites, or similar sources in academic writing. You CAN use reputable industry articles from publications similar to ComputerWeekly, PCMag, Wall Street Journal, New York Times, or similar sources. Academic journals and popular industry articles are accessible in the university’s library databases and Google Scholar. All references should not have a publication date older than 2005.

• Does not respond to the question(s) thoroughly meaning with more than 2 paragraphs
• Primarily consists of bullet points
• Uses statements such as “I have gone through your post,” “I have gone through your discussion,” “adding a few more points,” “based on my knowledge,” “according to me,” “as per my knowledge,” or similar
• Contains contractual phrases, as an example “shouldn’t” “couldn’t” or “didn’t,” or similar
• Uses vague words or phrases such as “proper,” “appropriate,” “adequate,” “it is obvious,” “it is clear,” “in fact,” or similar to describe a process, function, or procedure
• As an example, “proper incident response plan,” “appropriate IT professional,” “adequate security,” or similar. These words are subjective because they have different meanings to different individuals.

Running Header: FINANCIAL RISK MANAGEMENT STRATEGY 1

FINANCIAL RISK MANAGEMENT STRATEGY 4

Financial Risk Management in Kilgore

One with the financial risk management strategy would be to understand the government financial regulatory policies. The government regulatory policies may inhibit business success, and the organization has to embark on an in-depth analysis of the policies to understand how they operate. Understanding the operation of the policies create a platform to identify sources of the threats and formulate an analysis to maximize their business performance.

For example, research by Katehakis, Melamed, and Shi (2016) analyses the need to have a balanced flow of cash and inventories of goods based on the policies. It is an approach to maximize the value of an organization’s capital. It is easy to identify internally potential risks that may contribute to devastating effects.

The entity also needs to focus on external forces that could affect team performance like economic forces. For instance, slow economic growth can affect business performance due to reduced investment capital. Additionally, the global economic crisis can contribute to low business performance due to reduced capital to execute business operations (Bailey, Clua-Losada, Huke, Ribera-Almandoz, & Rogers, 2018). Hence, identifying how to mitigate against external economic forces can help the organization formulate a budget to cater for miscellaneous costs during a crisis. Also, the entity should focus on investing in innovation and implementing recent technologies to track financial performance. IT can establish financial analysis tools to make good decisions about investment strategies.

Therefore, the firm has a chance to eliminate financial related threats based on prioritizing risks depending on the severity (Fraser, Simkins, & Narvaez, 2014). For example, establishing a strategy to balance the cash flow should be given priority to eliminate financial complications. The firm should also invest in adhering to recovery size and regulation, including tax to eliminate lawsuits which can increase the cost of operations. Lastly, it would be crucial to establish a way of increasing the returns by venturing into innovations and recent technologies to eliminate the stiff competition.

References

Bailey, D. J., Clua-Losada, M., Huke, N., Ribera-Almandoz, O., & Rogers, K. (2018). Challenging the age of austerity: Disruptive agency after the global economic crisis. Comparative European Politics, 16(1), 9-31.

Fraser, J., Simkins, B., & Narvaez, K. (2014). Implementing enterprise risk management: Case studies and best practices. John Wiley & Sons.

Katehakis, M. N., Melamed, B., & Shi, J. (2016). Cash‐flow based dynamic inventory management. Production and Operations Management, 25(9), 1558-1575.