Hello, if you have any need, please feel free to consult us, this is my wechat: wx91due
BFF5902 Introduction to Risk Management S2 2024
Individual Assignment
Submission: Submit electronically via Moodle
Weight Assigned: 20 %
1. Instructions
- This is an individual assignment. Turnitin will be operating.
- This assessment is designed to test your achievement of Objectives 1 to 5 as detailed in the Unit Outline.
- The maximum word limit for this assignment is 2,500 words with a 10% allowance (2,750 words). The word count includes: the Title Page, Executive Summary, and body of the report. The Bibliography, Table of Contents, figures and tables and appendices are excluded from the word count limit.
- The assignment will be marked out of a total of 100 marks, and will count toward 20% of the total marks for this Unit.
- Work submitted for assessment must be accompanied by a completed and signed assignment cover sheet (link available on Moodle). It can be uploaded separately in the Moodle portal.
- The assignment should be submitted in PDF format if possible, otherwise Word.
- The assignment must be submitted via Moodle by the due date and time. Please note penalties will apply to late submissions. A penalty of 5% of the total mark allocated to this assessment task will be deducted for each day, or part thereof, if it is late. Multiple submissions are permitted up to the due date and time. You can upload draft copies before the submission date but when you are ready to submit, remember to push the submit button!
- In this assessment, you can use generative artificial intelligence (AI) in order to undertake research only. Any use of generative AI must be appropriately acknowledged (see Learn HQ).
2. Researching your topic
You must select TWO companies from the same industry, as shown in Section 4. You must only use the companies listed in this assignment. Failure to comply may result in a zero grade.
For this engagement you will have to research and analyse relevant information from internet sources and databases, e.g. Company Annual reports (10-K forms), and other governance/sustainability reports and investor information sourced from company websites, Reuters, Bloomberg, NASDAQ and Yahoo Finance internet sites. Relevant electronic databases are also available from the Monash Library such as MarketLine IBIS World, Hoover’s, FACTIVA databases. The Annual Reports are your primary source and a good starting point.
To use and analyse data from the EDGAR web site run by the Securities & Exchange Commission (SEC) go to: https://www.sec.gov/edgar/searchedgar/companysearch.html.
Think creatively in performing your analysis and make justifiable assumptions where necessary to overcome the hurdles you may confront such as any deficiencies in data availability about the company, its industry, and its competitors. When using other sources remember to cite them correctly.
You will find most of what you need from careful reading of the annual report and the company’s website including statements of the firm’s objectives. Note that a US firm’s descriptions of risks will be set out in the 10-K form under section Item 1A “Risk Factors”. For other annual reports you will need to find the section discussing “material risks”.
Information about what the company does, its key objectives and strategies, trends in financial performance, and profit/revenue segment information that illustrates the firm’s context are all available in the annual reports. Use this as your primary source but supplement with additional information available from the company’s investor relations page and other sources.
3. Style of your report
- A Title Page for the report;
- An Executive Summary which highlights the scope of the report, and its most significant findings and recommendations (typically 1/2 page at most);
- A separate Table of Contents page;
- An appropriate very brief introduction that discusses the purpose of the report, the report structure (which should reflect the scope of work performed) and any limitations;
- The body of the report should include the outcomes of the research and analysis;
- A conclusion that summarises the analysis and findings;
- Appendices should be used for detailed and/or large tables and figures; and
- A bibliography of references used should be included.
As this is a professional standard report it is important to use general principles of good business report writing to communicate succinctly. Use of page numbers, tables, figures, and summarised lists is encouraged. When using tables and figures remember to label them and reference and discuss their content in the text. Detailed analysis can be contained in tables and appendices in preference to the main text. Each section of the report should flow logically to the next and be consistent in argument. Remember diagrams are not included in your word count and may convey information more succinctly. An important tip - to avoid words being counted in your total, you can copy and paste tables and figures as embedded pictures.
Work submitted for assessment must be consistent with the guidelines set down in the Q Manual, which is the faculty's student guide for producing quality work on time.
Marks may be deducted where in-text citations and/or the reference list is not consistent with the American Psychological Association (APA) style, which is illustrated in the Q Manual.
4. Tasks to be completed
Base your analysis on the most current information and most recent annual reports. Important: make sure you use the tickers provided in parentheses to find the correct companies when you are searching for information. Note that these are US publicly listed companies.
|
Industry |
Company 1 |
Company 2 |
|
Technology |
NVIDIA Corporation (NVDA) |
Intel Corporation (INTC) |
|
Consumer retail |
Walmart Inc. (WMT) |
Amazon.com, Inc. (AMZN) |
|
Financial services |
MetLife, Inc. (MET) |
American International Group, Inc. (AIG) |
Once you have selected the two companies you must perform the following tasks and prepare your report.
1. Overview of Companies and Industry
Perform a comparative analysis of your two selected companies’ business operations and discuss the industry in which they operate.
- What do your companies make, sell or do? What are their key products and markets?
- What is your companies’ size in the industry in which they operate? Choose industry relevant metrics to show (eg. level of sales, number of staff, total assets, funds under management, number of branches or stores, relative brand value, etc.)
- How does your company’s performance compare to other companies in the industry over the last three years? (eg. profit and sales trends, market share trend, market capitalisation/return, etc.)
- Note any significant differences between the companies that may influence their risk profiles (eg. product, business line, supply chain, currency or country differences).
2. Risk identification
- List the major stakeholders and explain their objectives for both firms. Discuss how these stakeholders may influence risks.
- Identify and describe the main strategic objectives and operations of the two companies. Discuss how this might influence risks.
- Complete a SWOT analysis for both companies and from that compare and contrast their material internal and external downside risks.
3. Risk Analysis
Alternative A: Risk Taxonomy Comparison
- Complete a detailed risk taxonomy for BOTH companies summarising and mapping their stated risks into strategic, operational, financial or compliance/reputation risks, and further subcategories of your choice.
- Compare and discuss similarities and differences between the risk taxonomies of the companies including noting the difference in ranking of similar risks (Annual reports generally disclose risks in descending order of importance). Consider and discuss possible reasons for the differences.
- using your analysis above, complete a hypothetical consequence scale, a hypothetical likelihood scale and a hypothetical risk matrix relevant for ONE of the companies;
- Using this hypothetical risk matrix, rate the inherent AND residual risk levels of at least three (3) risks reported by the company in its Annual report. Explain the reason for your choices.
Alternative B: Risk Analysis
- Explain the nature of this risk discussing how it arises and what consequences it causes. You should reference the company’s own description of the risk and other sources if possible;
- Perform a detailed Bow-Tie analysis of the risk highlighting both the causes and consequences of the risk involved. As part of this answer be sure to propose and explain your own hypothetical controls and their intended operation and position on the bow-tie diagram. You should reference any treatments or controls the company has itself mentioned as well as your own ideas;
- Using your bow-tie diagram, discuss what hypothetical Key Risk Indicators could be used to provide leading indicators of changing risk levels; and
- Describe an AS ISO 31000 compliant risk management framework that would help the organisation to manage this risk.
Do not complete Alternative A and Alternative B. Choose only one alternative.
Use of Generative AI
Word Limit
4. Criteria for assessment
Table 2 Assessment Rubric
|
|
|
Unsatisfactory <50% |
Adequate 50% to 60% |
Satisfactory 60% to 70% |
Good 70% to 80% |
Very Good 80% to 90% |
Excellent >=90% |
|
Component |
Marks
Available
|
Fails to satisfy the minimum requirements |
Satisfies the minimum requirements |
Demonstrates an average level of understanding, interpretation, originality, insight and presentation |
Demonstrates a high standard of understanding, interpretation, originality, insight and presentation |
Demonstrates a very high standard of understanding, interpretation, originality, insight and presentation |
Demonstratesan outstanding or exceptional standard of understanding, interpretation, originality, insight and presentation |
|
Overview of the companies and industry and risk identification |
20 |
|
|
|
|
|
|
|
Alternative A or B |
50 |
|
|
|
|
|
|
|
Report quality and compliance |
10 |
|
|
|
|
|
|
|
Quality of analysis performed |
10 |
|
|
|
|
|
|
|
Quality and breadth of research |
5 |
|
|
|
|
|
|
|
Originality |
5 |
|
|
|
|
|
|
|
TOTAL |
100 |
|
|
|
|
|
|