Business Risks -- Overview of the Risk Environment
There are various types of business risks in the business environment, and these risks, of course, can differ from environment to environment depending on the type of business or organization. The severity and category of the risk also depends on the largeness of the organization and on various other factors, such as location, personality of employer, quantity of employees employed, and so forth (Crockford, 1986).

Generally, the most common risks are the following:

Workplace safety -- Every workplace environment runs the risk of not evidencing workplace safety according to the regulations of Occupational afety and Health Environment (OHA). Workplace safety applies to conditions of safety that exists both between workplace manager and his employees and between workplace and those who frequent, or profit from the services of the workplace. As regards the hospitality industry, for instance particularly the spa, workplace safety is inordinately important since…...

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Sources

APEC International Center for Sustainable Tourism (AICST) (2004), 'Tourism Risk Management in the Asia Pacific Region', APEC

APEC International Center for Sustainable Tourism (AICST) (2006) "Tourism risk management: An authoritative guide to managing tourism.."

APEC Tourism Working Group (2001), 'Statement on the Impact of Tourism of the September 11 Terrorist Attacks in the United States', APEC

Committee Draft of ISO 31000 Risk management" (PDF). International Organization for Standardization.  http://www.nsai.ie/uploads/file/N047_Committee_Draft_of_ISO_31000.pdf .

International Business Risks
The Risks of International Business

There are a number of challenges in conducting business internationally that are not issues for local companies. hile each foreign country may have its investment potentials, many also harbor risks only associated with global business activity. Sometimes the risks involved in doing business in a particular country exceed the benefits.

Here is a brief overview of some of the risks multi-national corporations face while doing business in foreign countries. 1) Strategic risk involves the ability of a firm to make strategic decisions in order respond to the forces that are a source of risk. These forces, such as the threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers, impact the competiveness of a firm. 2) Operational risk is the threat caused by the breakdown of machineries,…...

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Works Cited

Kurtz, D.L. (2010). Contemporary Business. 13th ed. Hoboken, NJ: John Wiley & Sons In

Okolo, Sidney. "Risks in International Business." Enzine Articles. . 16 July 2008. EnzineArticles.com. 16 August 2011. <  http://ezinearticles.com/?Risks-in-International-Business&id=1331702 >

Roman Holiday Pizza's treatment of fair market valuation and other accounting issues, and assesses their business risk and accounting controls. Roman Holiday Pizza is a restaurant franchise that has undertaken a strategy of growth through reacquiring franchise rights. Accounting for those reacquisitions raises serious issues during the audit process.
SAS 109 states that the auditor must gain a sufficient understanding of the entity and its environment, including its internal control, so that the auditor can determine the risk of material misstatement of financial statements, either because of error or fraud. There are red flags in Roman Holiday's environment.

According to the audit team, Roman Holiday has been growing faster than other firms within the industry, but analysts expect that growth rate to slow. Annual sales growth for firms in the restaurant industry was 4.3% for the preceding year, 2006. During recent years, most of Roman Holiday's growth came from acquisitions of…...

Tetra Tech EC & Risk Assessment
Discuss the evaluation of the risk management and compliance process at Tetra Tech

The risk management and compliance process at Tetra Tech is -- if you want to use a buzzword more often associated with the digital revolution than with a waste management enterprise (like, frankly, Tetra Tech) -- "crowdsourced."

Certain aspects of Tetra Tech's process seem almost enthusiastically aware of the SOX provisions protecting corporate whistle-blowers (of the sort who might have ratted out Enron or the sleaziest subprime-mortgage-vendors of the Florida panhandle a bit sooner than actually occurred, and whom Sarbanes-Oxley seems positively to encourage) as outlined in Fletcher and Newell's study of Tetra Tech: they quote management as stating to the employees "You have an obligation to raise your hand and say if I do it the way you are making me do it, it is not going to be optimal. Everything is about…...

isk Management in Family Owned Businesses
A family business can be simply described as "any business in which a majority of the ownership or control lies within a family, and in which two or more family members are directly involved" (Bowman-Upton, 1991). In other words, it is a multifaceted, twofold structure consisting of the family and the business meaning that the involved members are both the part of a job system and of a family system (Bowman-Upton, 1991).

Most families seek stability, intimacy, a sense of community, and belonging through the family business (Hess, 2006). On the other hand, whenever family and business are mentioned together, a majority of people think of continuous conflict, competition and contention (Crenshaw, 2005). However, "successful family businesses do not let the family destroy the business or the business destroy the family" (Hess, 2006).

The family-owned businesses are the backbone of the world financial system. According to a…...

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References

Barrese, J., & Scordis, N. (2003). Corporate Risk Management. Review of Business, 24 (3), Retrieved August 17, 2012 from  http://www.questia.com/read/1G1-111508707/corporate-risk-management 

Bodine, S.W., Anthony, P., & Walker, P.L. (2001). A Road Map to Risk Management: CPAs Can Help Companies Manage Risk to Create Value. (Consulting). Journal of Accountancy, 192 (6), Retrieved August 17, 2012 from  http://www.questia.com/read/1G1-80750205/a-road-map-to-risk-management-cpas-can-help-companies 

Bowman-Upton, N. (1991). Transferring Management in the Family-Owned Business. Retrieved August 14, 2012 from http://archive.sba.gov/idc/groups/public/documents/sba_homepage/serv_sbp_exit.pdf

Caspar, C., Dias, A.K., & Elstrodt, H. (2010, January).The Five Attributes of Enduring Family Businesses. Retrieved August 15, 2012 from Downloads/McKinsey Quarterly - Jan 2010.pdfhttp://www.businessfamily.ca/cert_register_files/Web

Conclusion

There are discrepancies encountered in conducting the valuation and risk of a private company. There arises these factors that if investigated can impact the process accordingly. The first research question that I suggest is investigating if the tax risk and equity market value exhibit a concave association, which is consistent with the optimal tax risk level from a valuation of equity standpoint. The second topic that can be researched upon is the changes facing the risk and value valuation service area for businesses and how they impact the practice. Finally, a study on how the Merger and Acquisitions revised standards are impacting business deals.

eferences

Chandra, U., & o, B.T. (2008). The role of revenue in firm valuation. Accounting Horizons,

22(2), 199-222. etrieved from http://search.proquest.com/docview/208923683?accountid=35812

Darrough, M., & Ye, J. (2007). Valuation of loss firms in a knowledge-based economy. eview of Accounting Studies, 12(1), 61-93. doi: http://dx.doi.org/10.1007/s11142-006-9022-z

Bernier, G., & idha, M.M. (2010). On the…...

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References

Chandra, U., & Ro, B.T. (2008). The role of revenue in firm valuation. Accounting Horizons,

22(2), 199-222. Retrieved from  http://search.proquest.com/docview/208923683?accountid=35812 

Darrough, M., & Ye, J. (2007). Valuation of loss firms in a knowledge-based economy. Review of Accounting Studies, 12(1), 61-93. doi:  http://dx.doi.org/10.1007/s11142-006-9022-z 

Bernier, G., & Ridha, M.M. (2010). On the economics of postassessments in insurance guaranty funds: A stakeholders' perspective. Journal of Risk and Insurance, 77(4), 857-892.

The existence and specialization of these three competitors materializes in the need for Creativity Sure to excel in the offering of the three types of products and services offered by challengers Karina Advertising, Falling Agency and Dorna PLC.
4.2 PEST Analysis

Political forces: The development of a full legislation within the advertising field has yet to become a complete process. ecent efforts have however limited the operations of advertising campaigns in the meaning of having eliminated all features that are not compatible with the product or which promise unrealistic outcomes, such as the tremendous loss of weight. Other issues regulated by the new laws refer to truth-in-advertising, product labeling requirements, online advertising and marketing, the advertising of specific products, telemarketing and direct marketing, and finally, regulations relative to environmental marketing (The Official Business Link to the U.S. Government, 2009). The new Obama administration has yet to take a new stand on…...

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References:

Chesbrough, H.W., 2003, Open Innovation: The New Imperative for Creating and Profiting from Technology, Harvard Business Press School, ISBN 1578518377

Fabozzi, F.J., Peterson, P.P., 2003, Financial Management and Analysis, 2nd Edition, John Wiley and Sons, ISBN 0471234842

Kellner, H., Heuberger, F.W., 1994, Hidden Technocrats: The New Class and New Capitalism, Transaction Publishers, ISBN 1560007877

LeClaire, J., 2000, Benefits of Advertising in Any Economy, Sign Industry,   last accessed on May 5, 2009http://www.signindustry.com/management/articles/2002-10-31-JL-AdvertInDownEconomy.php3 

usiness Failure
The first and perhaps the most obvious cause for business failure is fraud. Indeed, fraud is quintessential to business failure, mainly because it takes different forms and appearances, from intentional bad management to accounting frauds that lead to legal issues.

The most important example of how fraud brought down a bank that had been financing many important operations for the last three hundred of years is the arings ank. Unfortunately, arings was also a perfect example of how one single employee can actually bankrupt a company.

Indeed, Nick Leeson began his activities with arings after a short period spent with Morgan Stanley and he was soon sent to Singapore to clear the back office mess and futures trading that was on the way there. Initially operating only as general manager, Leeson soon began to trade on the Singapore Exchange (the SIMEX), especially in financial derivates, such as futures and options.

The fist…...

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Bibliography

1. Barings Debacle. On the Internet at http://www.riskglossary.com/articles/barings_debacle.htm

Barings Debacle. On the Internet at http://www.riskglossary.com/articles/barings_debacle.htm

Small usiness' Need for a CPA

One of the critical investments a small business can make to mitigate loss and risk is hiring a CPA and putting that CPA on the 'management team.' As Wells notes in his groundbreaking research, "Denise, a bookkeeper for a small trucking firm in irmingham, Alabama, wishes she had never heard of Ralph Summerford, CPA. ecause of his thoroughness, Denise is facing several years in prison for embezzling $550,000 from her employer. At least she will look good standing before the sentencing judge: Denise spent a great deal of her illegal loot on head-to-toe cosmetic surgery. She blew the rest on a shiny new Lexus, luxury vacations, clothing and jewelry. And, of course, Denise had to have a big house to store all of her finery." (Wells, 2003)

Surprisingly, it was not at all the fancy standard of living that made her employer suspicious. "The owner was…...

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Bibliography

Wells, Joseph. 2003. Protect small business: small companies without adequate internal controls need CPAs to help them minimize fraud risk. Journal of Accountancy.

Small Business Administration. 2005. www.sba.gov.

Federal Reserve Bank. 2004. www.federalreserve.gov.

AICPA. 2005. At www.aicpa.org/antifraud/training/homepage/htm.

Business Finance for PizzaPalace: Analyze and recommend optimal capital structure
Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant chain. The company's EBIT was $50 million last year and is not expected to grow. The firm is currently financed with all equity, and it has 10 million shares outstanding.

When you took your corporate finance course, your instructor stated that most firms' owners would be financially better off if the firms used some debt. When you suggested this to your new boss, he encouraged you to pursue the idea.

As a first step, assume that you obtained from the firm's investment banker the following estimated costs of debt for the firm at different capital structures:

P e r c e n t FI n a n c e d w I t h D. e b t, w d r d

0%

8.0%

8.5

10.0

12.0

If the company were to recapitalize, then…...

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References

AccountingforManagement.com. (2011). Operating leverage and DOL. Retrieved May

12, 2011 from  http://www.accountingformanagement.com/operating_leverage.htm 

Ehrhardt, M.C. & Brigham, E.F. (2010). Financial management theory and practice.

Thomas One. 13th Edition. Pp 351-800.

In contrast with the mutual funds, 'Mutual funds trade hundreds of stocks in many unrelated industries, with very little of the total portfolio in any single stock. By contrast, when a company expands into a new area, its portfolio consists of two stocks, typically 90% in the core operation and 10% in the new businesses' (Tirole, 2005). The diversification in majority of the cases is responsible for lower return and maximal risk factor. esearchers have observed that there is possibility of higher failure rates and lower returns for unrelated acquisitions than for related acquisitions. When the company acquires businesses in their own industry, it is observed that lowest failure rates and highest returns phenomenon occur. The reason why the diversification into unrelated business is considered to be risky is that the corporate is unfamiliar about the industry itself, and therefore the corporate is likely to overlook critical risk factors…...

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References

Montgomery, C.A. Corporate Diversification. Journal of Economic Perspectives. 1994. pp. 165

Tirole, J. The Theory of Corporate Finance. Princeton University Press. 2005

Yang, L. What Has Motivated Diversification: Evidence from Corporate Governance? 2005.

Uner Kirdar and Leonard Silk. People: From Impoverishment to Empowerment. Oxford University Press. 1995.

Risk Citeia
ID NO.

Chosen Business: City estauant

Befoe discussing what the coe activities the company undetakes to achieve its opeational objectives, it is vital to highlight these opeational objectives. The following section gives a bief oveview of these objectives:

OPERATIONAL OBJECTIVES

The stategic objective of Taste Inn is to become the most liked band among its customes, a financially and opeationally stong company in the eyes of its investos, and a competitive paticipant in the food and hospitality industy of Austalia. The majo opeational objectives of the company include:

A stong custome base:

The most impotant opeational objective of the company is to stengthen its custome base by attacting moe and moe customes towads its poduct offeings. It aims to build a stong public image in the eyes of its customes and the society in which it opeates.

Become a financially and opeationally stong copoation:

The second most impotant opeational objective of the company is to become…...

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references

Introduce products with innovative taste and new ingredients, use extensive marketing campaigns

Introduce products with innovative taste and new ingredients,

A

Manager Marketing

risks that BP faces is with respect to ethics. The company's pursuit of profits over safety on the Deepwater Horizon is perhaps the most obvious example of this risk. Ethically, safety would have been the more important concern, but BP pushed profit as a primary motive despite what it would do to worker safety. The end result, of course, cost the company over $40 billion as the result of the damage that was caused by the accident that occurred as a result of that ethical lapse (earden, 2010).
Ethics continue to be a risk at BP because the unethical practices that led to Deepwater Horizon. Instead of learning from Deepwater Horizon, BP is still believed to lack transparency with respect to its practices. As a reflection of how ingrained the company's lack of ethics is, the chair of safety, ethics and environment had 43% of shareholders vote against him in…...

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Works Cited:

Maharaj, A. (2011). Transparency still a slippery issue at BP. Corporate Secretary. Retrieved December 7, 2011 from  http://www.corporatesecretary.com/articles/boardrooms/11923/transparency-still-slippery-issue-bp/ 

O'Brien, M. (2010). HR lessons flow from BP's crisis. Human Resource Executive. Retrieved December 7, 2011 from http://www.hreonline.com/HRE/story.jsp?storyId=448983661

Wearden, G. (2010). BP oil spill cost to hit $40 bn. The Guardian. Retrieved December 7, 2011 from  http://www.guardian.co.uk/business/2010/nov/02/bp-oil-spill-costs-40-billion-dollars

Business Fraud
In the wake of scandals such as Enron and others, corporate fraud still appears to be prevalent across the business world. The reasons for this can be many and varied, although greed and a sense of hubris appear to be two of the common role players. In other cases, desperation could also be a factor, where a business is in danger of failing and its owners or managers see little choice but to cheat or sing with the boat. In many of the fraud cases, questions regarding regulation also abound, where regulatory authorities appear to be unable to either identify fraudulent activity or to sufficiently monitor the actions of those involved. This appears to be at least partly the case as far as ussell Wasendorf Sr. is concerned, who recently confessed to have committed fraud as the owner of his brokerage for 20 years Huffstutter and Polansek, 2012).…...

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References

Holton, C. (2009). Identifying disgruntled employee systems fraud risk through text mining: A simple solution for a multi-billion dollar problem. Decision Support Systems, Vol. 46. Retrieved from: ftp://163.25.117.117/gyliao/TODylan/Identifying%20disgruntled%20employee%20systems%20fraud%20risk%20through%20text%20mining-%20A%20simple%20solution%20for%20a%20multi-billion%20dollar%20problem.pdf

Huffstutter, P.J. And Polansek, T. (2012, Jul 13). With ego too big to fail, Iowa broker admits 20-year fraud. Reuters. Retrieved from:   -- sector.htmlhttp://news.yahoo.com/pfgbest-ceo-arrested-iowa-brokerage-fails-181115538 

Johnson, S.A., Ryan, H.E., and Tian, Y.S. (2008, Feb 29). Managerial Incentives and Corporate Fraud: The Sources of Incentives Matter. Retrieved from: http://www2.wu-wien.ac.at/rof/papers/pdf/Johnson-Ryan-Tian_Managerial%20Incentives%20and%20Corporate%20Fraud.pdf

Langevoort, D.C. (2007). On Leaving Corporate Executives "Naked, Homeless and Without Wheels": Corporate Fraud, Equitable Remedies, and the Debate Over Entity vs. Individual Liability. Georgetown Law; The Scholarly Commons. Retrieved from:  http://scholarship.law.georgetown.edu/cgi/viewcontent.cgi?article=1453&context=facpub&sei-redir=1&referer=http%3A%2F%2Fscholar.google.co.za%2Fscholar%3Fhl%3Den%26q%3Dcontrols%2Bon%2Bcorporate%2Bfraud%26btnG%3D%26as_sdt%3D1%252C5%26as_sdtp%3D#search=%22controls%20corporate%20fraud%22

The objectives of this project will result in a reduced security risk due to incoming spam and junk email messages. Achievement of the objective will be difficult to measure because it represent something that will not happen if the project is successful. A reduction in threats due to the actions or inactions of employees will result in achievement of these objectives. An employee questionnaire or survey would be useful in determining if the policies result in a greater awareness and adherence to prescribed policies regarding how to treat spam in the company. Increased awareness and willingness to take actions to increase security, as measured by a survey conducted some time after the policies are in place will provide insight into the success or failure of the prescribed measures.

Evaluation

There are several contributing factors that will affect the outcome of the project and the ability to achieve the intended objectives of the…...

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References

D'Antoni, H. 2003. Span Tests Employees' Productivity, Patience. Information Week. May 13, 2003. [online]

  [Accessed 17 March 2009].http://www.informationweek.com/news/software/showArticle.jhtml?articleID=9800038 

McCusker, R. (2005). Spam: nuisance or menace, prevention or cure? Trends and Issues in crime and criminal justice. March 2005. No. 348. [online]   [Accessed 17 March 2009].http://www.aic.gov.au/publications/tandi2/tandi294.pdf 

Winslow, L. 2005. SPAM Killing Small Business Productivity. Ezine Articles. [online]