Summary
Summary IEB Grade 11 Notes for final exam
- Course
- Business Studies
- Institution
- 11
To help you pass grade 11. Will discuss and summarise all the chapters for the final business exam and better prepare you for them
[Show more]
Seller
Follow
Content preview
Risk, Financial, Public Relations andHuman Resource Management
Section A: Risk Management Function
1. What is Risk Management?
Risk management identifies, assesses and controls threats as well as developing strategies
to deal with them.
2. Risk Management Concepts
2.1. Identification of risk
Potential future outcomes must be brainstormed using techniques like the decision tree
technique. Based on these techniques, strategies can be designed.
2.2. Description of risks
● Preventable risks
● Strategy risks
● External risks
2.3. Risk estimation
Risk estimation is when the management of a business looks at the probability of certain
risks occurring and the impact that would have on the business
2.4. Risk profile
A risk profile is drawn up by management and is a summary which lists all the estimates of
what can go wrong, together with a strategy, a new product or a new program to mitigate it.
This summary is then visualised by using probability studies to show the impact if the
strategy, product or program turned out to be unsuccessful.
2.5. Risk culture
Risk culture is part of risk management, as it has to do with the culture of a business, which
the business cannot control. Employees in a business will have a set of shared behaviours,
values and goals based on their experience together. This will lead to the type of decisions
made in that business as well as their assessment on how much risk that business can
afford.
3. Types of Risks
● Strategic risk
● Compliance risk
● Operational risk
● Financial risk
● Reputational risk
, 4. Risk Management Process
Step 1: Risk identification - identify and define potential risks that may negatively impact the
business
Step 2: Risk analysis - gain insight into the possibility of the risk occurring as well as the
impact it may have
Step 3: Risk assessment and evaluation - further evaluation to determine if the risk is likely
and if it is acceptable to the company to take on the risk in return of the potential reward
Step 4: Risk mitigation - the company assesses their highest ranking risks and develops
plans to alleviate them
Step 5: Risk monitoring - follow up and review of the risk process. Track new and existing
risks.
Section B: Financial Function
1. Introduction
It is the role of the financial department to maximise profit by ensuring that there is enough
capital available in the business to carry out operations efficiently. For this purposes the
Chief Financial Officer (CFO) is involved in compiling feasibility studies and then in drawing
up a number of different budgets.
2. Feasibility studies
Feasibility studies
● Technology and system feasibility
● Economic feasibility
● Legal feasibility
● Operational feasibility
● Schedule feasibility
● Market feasibility
● Resource feasibility
● Financial feasibility
3. Costs, Revenue and Break-even Analysis
The revenue/income of a business is made up primarily of its sales, but also includes income
derived from interest of savings or investments, commission earned on sales promotions,
rent income
Costs may include operational expenses, production costs, financing costs, taxation costs
will include all expenses incurred in the normal activities of running the business. Production
costs are incurred by manufacturing businesses and are made up of material costs, labour
costs and factory overheads.
Different costs can be distinguished as being:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller callummillington. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R120,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now