Risk Management Proposal

HOW DOES RISK MANAGEMENT AFFECT A COMPANY$$S FINANCIAL PERFORMANCE

Issue: Examine the affiliation between different strategies and types of risk that impact the overall corporate finance performance.

Research Hypothesis: Risk management meaningfully impacts an organization$$s capital and earnings in challenging situations, if appropriate risk management strategies are executed carefully.

Research Approach:

Quantitative approach: Key Risk Indicators $($KRI$)$ a system of measurement that assists an organization in observing and assessing the level of risk they are exposed to$.$ The Key Risk Indicators investigates all scenarios for any potential risk factors. Once the KPI identifies the risk potentials, the corporation builds strategies to avoid potential risks.

Qualitative approach: Key Performance Indicators $($KPI$)$ a measurement system that determines the results or outcomes of the organization$$s performance. The purpose of the KPI approach is to assist the organization in identifying, observing, and limiting potential risks to minimize negative value to the organization$$s capital and earnings.