Risk Management Strategies section (IV)

FIN 685 Milestone Two Guidelines and Rubric The final project for this course is the creation of an analysis and recommendations paper that demonstrates what you have learned about risk management in a real-world context. You will research a publicly traded company of your choosing and analyze it as a potential investment opportunity. Prompt: In this milestone, you will submit a draft of the Risk Analysis section (III) and the Risk Management Strategies section (IV) of the final project. You will analyze the different risks that the company faces and classify the risks (e.g., stand-alone risk, corporate risk, or market risk), which were discussed in Module One and more specifically in Module Five. You will also analyze the impact of these risks in regards to the company’s internal and external environments. Lastly, you will recommend risk management strategies that minimize the risk and maximize the return for the company. For example, you might think about whether a company should reduce its use of debt or seek short-term or long-term financing options instead. Specifically, the following critical elements must be addressed: III. Risk Analysis a) What is a specific risk that you have identified as relevant to this company, its product(s), and its industry? b) As which type of risk would you classify it? In other words, is it considered stand-alone, corporate, or market risk? Be sure to defend your reasoning. c) What do you feel is the impact of the risk with regard to the company’s external environment (i.e., economic trends, regulatory landscape, and competition), as well as its internal environment (i.e., people, process, and infrastructure)? d) To what extent do you feel this risk can be effectively balanced with return? Be sure to justify your reasoning. IV. Risk Management Strategies a) What risk management technique do you feel would be most appropriately employed to minimize or mitigate the effect(s) of this risk? Why? b) Similarly, what strategies might you suggest for maximizing return in the face of this identified risk? Why? c) What recommendations would you make in terms of determining the effectiveness of these risk/return management measures over time? Be sure to justify your recommendations. Rubric Guidelines for Submission: Your paper must be submitted as a 5- to 6-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least 3 sources cited in APA format. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value Risk Analysis: Specific Risk Reasonably characterizes risk associated with the company, its product(s), and its industry Characterizes risk associated with the company, its product(s), and its industry, but response is cursory, illogical, or inaccurate Does not characterize risk associated with the company, its product(s), and its industry 13 Risk Analysis: Type Classifies type of risk and defends reasoning Classifies type of risk, but response is illogical, inaccurate, or weakly defended Does not classify type of risk 13 Risk Analysis: Impact Analyzes the impact of the identified risk Analyzes the impact of the identified risk, but response is cursory or illogical Does not analyze the impact of the identified risk 13 Risk Analysis: Balance Assesses the extent to which the risk can be effectively balanced with return and justifies reasoning Assesses the extent to which the risk can be effectively balanced with return, but response or reasoning is cursory or illogical Does not assess the extent to which the risk can be effectively balanced with return 13 Risk Management Strategies: Technique Recommends risk management technique for most appropriately minimizing or mitigating the effect(s) of identified risk and explains why Recommends risk management technique for minimizing or mitigating the effect(s) of identified risk, but recommendation or reasoning is cursory or illogical Does not recommend risk management technique for minimizing or mitigating the effect(s) of identified risk 13 Risk Management Strategies: Maximizing Suggests strategies for maximizing return in the face of the identified risk and explains why Suggests strategies for maximizing return in the face of the identified risk, but suggestion or reasoning is cursory or illogical Does not suggest strategies for maximizing return in the face of the identified risk 13 Risk Management Strategies: Effectiveness Makes appropriate recommendations for determining effectiveness of risk/return management measures over time Makes recommendations for determining effectiveness of risk/return management measures over time, but recommendations are cursory or illogical Does not make recommendations for determining effectiveness of risk/return management measures over time 13 Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has multiple errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 9 Earned Total 100%

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