For Phyllis Young

   Viewing the course information and course objectives and figuring out how these objectives will support my success in management. Then, discussing the risks and challenges a manager might face if they have not mastered these objectives and explaining. Accomplishing these objectives will support my success in management is by helping me understand and know what factors  affect the exchange rate so I will know how to manage the business around those factors. Analyzing the theories of interest rate determination will help me know what theories are being used or that need to  be used to determine interest rates. Determining an appropriate level of risk management will be helpful by helping me determine if a project is worth the time and money invested to do before doing it. Identifying three main sources of financial risk will help me by helping me understand or know what kinds of financial risks there are out there and how they will affect the business and how to avoid letting them ruin the business. Lastly, identifying three broad alternatives for managing risks this will help in that it will help me know in what ways to deal with risk and pick alternate ways to deal with it.

          The types of risks or challenges a manager might encounter if they have not mastered these objectives are that they could have the business go under, they could loose everything they have by trying to keep the company afloat instead of letting it sink or selling it. If the risks are big enough and the business is not doing well you can loose everything you have and if you don't know how to manage the risks or have something in place to counteract the risks then if risks come into play they can be devastating for a business or the person that owns the business.

The objectives if this class calls for us to have an understanding/master the ways that an organization and by extension its managers employs the strategies and techniques which enables an organization to deal with the uncertainties of outcomes resulting from the financial markets. Some of these risks are for example operational,financial and commodity. In essence this is another cornerstone of the foundation which we are laying in becoming successful managers. For me personally, i am not versed in risk management, however by being able to master the dynamics of this course i am of the opinion that i will a step closer to what a successful manager should be. A manager who does not understand how to successfully manage the challenges and risks associated with the uncertainties of the financial market is sure to put his career and also his organization at risk. Some of the risks he/she may face are for example efficient use of capital by not knowing where and how to use the company's assets and capital he/she runs the risk of misusing capital.  Another risk would be the issues which can arise from poor corporate governance such as how to implement the right compensation packages for employees and management alike. One of the major risk that a manager can encounter is operational due to the fact that the global market is becoming and because this is happening at a rapid pace mistakes can be made in misjudging  or miscalculating how business is done on a  global multinational level(e.g. foreign exchange).

Identify the three main sources of financial risk

• Risks businesses take to make the most value and profits for their shareholders such as, transactions and actions of external organizations: vendors, competition, and customers
• Risks that occur from political and economic differences which can’t be controlled by the company and the actions of the people, processes, and systems within an organization.
• Financial loss that occurs when there are changes in commodity prices, exchange rates, market prices, credit rates, and interest rates that are unpredictable or movement in the market.

How will accomplishing these objectives support your success in management?

            Accomplishing these objectiveswill give me the understanding of the qualitative differences of the many primary financial risk that an organizations will have to deal with.  It will support my success by being able to effectively create and implement a risk-management system that will help me recognize and assess and put forth a strategic plan of action before the risk could occur. 

What risks or challenges might a manager encounter if they have not mastered these objectives? Explain.

            Managers face many challenges; however, communication is the number one challenge they may face.  Being able to communicate with your stakeholders which will have a diverse set of expectations and your team which also offers a different culture, ages, education levels in the organization is an added challenge.  Mastering these objectives will allow you to find different ways of effectively communicating the potential risks that could occur.  By not mastering these objectives you will not be able to create and implement an effective risk management strategy to advert a financial loss which could mean the success or failure of your organization.