Business Risks And Business Risk - 1408 Words

Business Risk is an uncertainty that is affiliated with a particular circumstance that could affect business operation or cause financial insecurities for the company. Business risk assessment is the process of determining whether a particular uncertain circumstance has the potential to threaten your business operations (Schwartz and Chandler, 2012). In the competitive market, it is important that businesses assess the risk regularly and respond with a sound reaction to be successful. Small businesses may not afford to determine the risks with a complicated statistical method, but proper use of Accounting Information System provides enough information to find out potential threats. This research discusses the methods of applying accounting information to assess the business risk. With the discussions of available research papers, it proposes better ways small businesses can determine the business risks and respond to it using the accounting information system. Taking precautions and paying attention to few procedures might reduce the risks significantly. From the research, it is concluded that small business owners can reduce likelihood of hazards, misappropriation of assets, frauds, misuse of information, and the marketing risk for a low cost. To achieve the goal, a checklist needs to be followed ensuring the proper segregation of duties, restricted access with secure server, frequent inventory and assets count, communication with customers, and employee training.Show MoreRelatedBusiness Risk1463 Words   |  6 PagesA risky business Dodie: We are all here now. As you know that Zelal Sulen is our new boss now. After she took up the official post, she found that Hi-Style is out of touch with its target consumers and is losing direction. As the member of manager consultants, for this point, today we need to think out at least two options to advise her to improve the situation. Am I understood? And think a while... Okay, lets make a start. Who want to speak first? Lily: Well, in my opinion, Hi-Style could allocateRead MoreBusiness Risk1846 Words   |  8 Pagesthis question needs the explanation of inter-relation between business risk and audit risk, which is automatically, must include the risk analysis as an approach to auditing to overcome with the concern of handling these risks. Before entering deeper to the business risk and how an auditor can manage and be aware of these risks, lets define and describe some of the terms which is related to this question as follows:- Business risk is generally defined as the threat posed by an event or actionRead MoreBusiness Risks And Inherent Risks1512 Words   |  7 PagesBusiness Risks and Inherent Risks Starbucks’ success depends significantly on the value of their brands and failure to preserve their value, either through their actions or those of their business partners, could have a negative impact on their financial results. 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