Problem: Issues in Risk Analysis
No more than 400 words
Introduction: Risk is ever present in business. A manager takes risks in the hope of making a profit, usually by trying to forecast future prices and investing his money. However, the outcome is uncertain.
Task:
- Explain the relation between uncertainty and risk.
- Describe the situations under which managers decide to take risks.
- With special reference to political risks that a firm faces, describe the manner in which a firm can manage exposure to risk in the international arena?
Give suitable examples using the Internet.