As a junior congress person you have been asked to help promote a bill to allow casino gambling in your state. There is much opposition to this bill. Using distributive bargaining, discuss the pros an

1. What are the main financial risk management issues that Cathy and the rest of the management team at Kilgore need to focus on?

There are some financial risk management issues that the management team at Kilgore has to take care of. One of them is the governmental financial regulatory policies. Some of the policies in place may limit some financial practices. It is upon the organization to study these policies and make sure every member of the team understands them and is ready to execute them. Internally, the firm has to ensure that it detects potential risks in advance and eliminate them before they can have devastating effects. For instance, any factor that can result to negative cash flow such as having more outflow than in-flow from spending more than the firm is earning should be controlled and, in most cases, avoided (Saunders et al., 2006).

There are external forces that could affect the team’s operations such as the external economic forces which may include slow economic growth, global economic crisis, among other issues. Also, the team has to keep in mind that sooner or later, the force of competition may come hitting hard on the company’s operations. The firm also has to include in the budget the miscellaneous costs which include the regulatory and legislative charges. It should also invest much into security to control cybercrime. Last but not least, the firm has to invest in innovation and implementation of recent technologies (Zhu & Fukushima, 2009).

2. How would you prioritize these issues?

Issues would be prioritized depending on their severity. Typically, some issues are more severe than others and therefore, they need to be responded to faster. For example, balance the cash flow in the firm should be the first step to take. The firm should then ensure that it adheres to all legal policies, rules, and regulations and pays all dues—including taxes. The firm should then focus on increasing returns, venturing into innovation and recent technologies, and facing out competitors (Zhu & Fukushima, 2009).

References

Saunders, A., Cornett, M. M., & McGraw, P. A. (2006). Financial institutions management: A risk management approach. New York, NY, USA: McGraw-Hill.

Zhu, S., & Fukushima, M. (2009). Worst-case conditional value-at-risk with application to robust portfolio management. Operations research, 57(5), 1155-1168.