Unit 4 Assignment 1 Risks in Various Forms

School: University of Central Florida - Course: ACCOUNTING 554 - Subject: Accounting

Introduction Every day, brokerage and insurance companies face new obstacles. All transactions and rules should be investigated, evaluated, and monitored by a risk management team. Companies and their employees should be aware of regulatory hazards. There is always some danger and uncertainty while operating a company. Brokerage firms must keep track of the risks they face and the activities they take to mitigate or eliminate those risks. Tactical Risks Target must analyze the five primary areas of tactical risk to ensure that everything is covered. The danger of financial loss because of changing company conditions is known as tactical risk. Assessing market risk demands knowing which parts of the company earn the most money and what steps may be done to enhance sales in other areas. Target is exploring increasing food sections in stores that do not have a full-service grocery department. Target will not invest in expanding its food assortment if a store is not profitable[ CITATION Hil03 \l 1033 ]. Investing in a better food department would be a waste if the firm did not expect that specific items' prices would rise. A kind of competitive risk is the necessity to maintain competitive pricing in the face of competition. Marketing carries the danger that the message may be misconstrued, directed to the wrong target, or just out of date. Target's advertisements perform a good job of reaching the greatest number of people possible. Another significant source of worry is worker and public safety. Target has done a fantastic job of keeping its stores clean and sanitary throughout the current pandemic[ CITATION Cha \l 1033 ]. As they go down the aisles, customers feel more at ease. Target manages the legal hazards of running a shop by instituting measures such as emergency escape plans and evacuation procedures. Individual evacuation strategies for each company in the case of a fire or active shooter might save money on legal costs related to emergency injuries[ CITATION Cha \l 1033 ].