FIN 342 Lecture Notes - Lecture 3: Cloud Storage, Cash Flow, Discounted Cash Flow
Document Summary
Fin 342- risk management and insurance (8/29 lecture notes) Pre-loss: profitability and growth, prepare for potential losses at minimum cost, tolerable uncertainty - reduce anxiety, can i sleep at night? . If you aren"t in flood plain, won"t worry about floods. Certain businesses/industries have different levels of tolerable uncertainty i. e. csu > large corporation: csu could go out of business if they risk a lot vs. corporation that has more cushion, meet all legal obligations. Post-loss objectives: survival, continuity of operations, stability of earnings, continued growth. ** social responsibility falls into both pre-loss and post-loss: pre-loss: overly take care of customers to help not lose anybody. Overview of risk management process: step 1: risk identification. If you don"t know it"s a risk, you can"t manage it a: need to understand internal and external facts that affect the business/clients (legal, regulatory, economic, financial, human, competitive) b. i. Ex: if you aren"t going to live very long, one would need to consider costs.