Techniques for Dealing with Risk in Financial Management Decision-Making

This Assignment will assess your ability to respond to the Module Aims:

• enable students to appreciate the financial objectives of companies.
• enable students to understand and evaluate the strategic implications of financial management models and theories.
• enable students to apply financial arrangement techniques to practical situations.

When making a financial decision, we must normally make some prediction about the future. That is, we must try to form some view about the likely future outcome resulting from our decision. Whilst we may try our best to produce an accurate prediction, the future is uncertain and so misjudgements will often occur. Techniques for dealing with the problem of risk are, therefore, becoming increasingly important to a business. Risk analysis and evaluation is of particular relevance when financial management decisions are taken so as to effectively deal with the future, but the future is unpredictable and littered with risk.

Evaluate the techniques available to financial managers to deal with risk in financial decision-making. Illustrate your argument with examples from your own experience or research.

This assessment satisfies the following learning outcomes as specified in your module guide.

Notes

1. Plagiarism

It is each student’s responsibility to familiarise themselves with the Institute’s policies on plagiarism and use of unfair means contained within the Student handbook

Assignments handed in after the Scheduled Deadline will be penalised as follows:

Up to one week late:  10% of the mark deducted

More than one week late, but handed in before the end of the module:  maximum mark 40%

Handed in after the end of the module accepted at the discretion of the examination board: maximum mark 40%

3. Referencing

Referencing at level two using the Harvard Author Date System must be demonstrated. A bibliography must be provided at the end of your work with appropriate

In-Text Citation, using the Harvard Author Date system.

ORIGINAL – Presented in a way which differs from other Published Material

ACKNOWLEDGED – Any work used from Secondary Sources of Literature in completing your Assignment must be Identified and Acknowledged using the Harvard Author – Date System

You are expected to make use of secondary literature sources. These sources may be available in paper and/or electronic form. These sources may include:

· Refereed academic journals; – articles in such publications are evaluated by academic peers prior to publication to assess their quality and suitability

· Other academic journals – such publications normally have an editor and/or editorial board to select articles. The relevance and usefulness of such journals vary considerably

· Professional journals – articles included in such publications are often of a practical nature and more closely aligned to professional (practitioner) needs than those in academic journals

· Books – may be aimed at the academic market or at practicing professionals. It is likely that those with an academic slant will be of most relevance to you

· Newspapers – a good source of topical events and developments

It is expected at Level Three - HE6 - that a bibliography will contain between fifteen and twenty sources. As a MINIMUM the bibliography should include: three refereed academic journals, three professional journals and three academic books