Thinking about Risk Management

Objectives

• Describe the responsibilities of a financial manager
• Define risk management

Assignment Overview

This assignment allows students to become more familiar with the difficult roles associated with a financial manager in the workplace.

Deliverables

Answers to the exercise questions

Step 1 Review the information in the lesson and answer the following questions.

• Whose job is it to plan and organize the acquisition and utilization of financial assets?
• What does Accounts Payable mean?
• What is a promissory note?
• What is the difference between secured and unsecured loans?
• Briefly describe the Risk-Return Relationship.
• What is the difference between pure risk and speculative risk?
• Briefly describe how insurance works as risk management.