Turnitin and Waypoint is being used to check for plagiarism and Please use APA format. Please pay close attention to plagiarism, and it's not tolerated. Risk Identification and Mitigation Using the...

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Turnitin and Waypoint is being used to check for plagiarism and Please use APA format. Please pay close attention to plagiarism, and it's not tolerated.

Risk Identification and Mitigation

Using the annual report from the company that you have selected for your Final Project, discuss the risks the company faces and the actions they take to mitigate those risks. Refer to the Management Discussion and Analysis section of the annual report for this information.


As part of your response consider whether you think the risk mitigation techniques are reasonable. Discuss what others concerns or advice you would offer if you had the opportunity.


Include in your post a calculation for the probability of one of the risks identified by your company. This information may not be available in the annual report, therefore you will likely need to conduct research and critical thinking to complete this calculation.



Tip: For help with reading an annual report access this handy guide from


Money Chimp(Links to an external site.)


(
http://www.moneychimp.com/articles/financials/fundamentals.htm)
.


Develop a 200 – 300 word explanation supporting your position.





Answered Same DayJul 22, 2021

Answer To: Turnitin and Waypoint is being used to check for plagiarism and Please use APA format. Please pay...

Soumi answered on Jul 23 2021
148 Votes
Running Head: CORPORATE FINANCE                            1
CORPORATE FINANCE                                    2
CORPORATE FINANCE
Risk manage
ment is an important part in the day-to-day operations of the companies. In this scenario, the chosen company is Sterling Construction Company. As per the information in the annual report, the risk faced by the company include rapidly increasing labor costs, higher cost of lease and others. In order to mitigate such risk the company can enter into long-term contracts with labor agencies. This will be similar to hedging, as the price of the labors will be fixed in the end.
As on 31st December 2017, the company had more than 150 projects, which were less than 90% complete. This indicates that huge amounts of funds of the...
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