Identification of Risk
Overview: Professionals working in areas of finance and economics combine understanding of the business and management issues related to the real-world activities of public and private entities worldwide, with a sound knowledge of macroeconomic theory and policy tools and technical skills. They are frequently asked to interpret data to draw research-based conclusions regarding activities of the firms they manage, in relation to broader macroeconomic phenomena.
In your final project, you will develop the ability to understand how economy-wide or regional economic forces affect decisions of senior business management officials in the private sector.
Use Amazon.com as the US company for this term paper
Prompt:
For Milestone One of your final project, you will write a paper that introduces a firm of your choosing that is based in the United States (Amazon.com).
You will identify the types of economic risk that certain broad varieties of activities expose business entities to in general.
You will then identify and contrast various types of risk that your chosen firm is subject to, including idiosyncratic, systematic, and systemic.
In addition, you will be required to consider the effect of macroeconomic variables on risk and illustrate your findings graphically or mathematically.
Specifically, the following critical elements must be addressed:
I. Identification of Risk
a. Using the aspects of risk outlined in Chapters 5–8, identify the types of economic risk that certain broad varieties of activities expose business entities to. (Uploaded Book Chapters 5–8)
b. Identify and describe two areas of your chosen firm’s operations that are subject to significant economic risk of each of the following: idiosyncratic, systematic, and systemic varieties.
c. Identify specific macroeconomic variables that are associated empirically with an increase in the identified varieties of risk, and which may indicate an increase or decrease in systematic and systemic risk specifically.
d. Graphically and/or mathematically illustrate a movement in macroeconomic variables that would theoretically be associated with this risk.
Guidelines for Submission: Your paper must be submitted as a 2–3 page Microsoft Word document with double spacing, 12-point Times New Roman font, one- inch margins, and at least two sources cited in APA format.
