Risk Management – ACFI5018
Semester 1 2015/2016
Shareholders and lenders, whilst not being the only stakeholders, provide capital to companies because they seek a return commensurate with the level of risk that they are willing to take.
This implies that they expect the executives of companies to demonstrate levels of entrepreneurship and dynamism which will involve a certain degree of risk taking. The expectation is that these risks will be well considered and well managed.
It could, therefore, be proposed that the improved management of business risk will lead to enhanced and sustainable, shareholder value.
It is within this context that Ryanair has grown as a company from carrying 5,000 passengers in 1985 to carrying 81,700,000 passengers in 2013 (http://corporate.ryanair.com/about-us/history-of-ryanair/).
Part A ( this part done in order #81538630 “The major risks that faceing Ryanair with analyses)
Using your knowledge of Risk Management, you are required to systematically approach the following tasks:
1. Identify, using appropriate models/classifications, the major risks that face Ryanair within the foreseeable future. It should be remembered that the identified ‘risks’ may present opportunities or threats/hazards. You should ensure that you present well-researched and well-referenced evidence. (You are expected to present a good deal of research – at least 25 references. You are not expected to over-rely on the Ryanair corporate website and each risk example that you provide should be accompanied by independent supporting references).
2. Formulate strategies for taking advantage of the opportunities, or strategies for controlling the threats, that you have identified in Task 1. It would be good practice to number the risks in task 1 and to use the same numbering in Task 2.
Part B ( this is the order requred now )
3. Semple (2007) states that, “There are considerable benefits in taking time to articulate risk appetite properly” (p25). He goes on to add that, “Different parts of organisations and external stakeholders have different perspectives [on risk appetite]” (p25) and that, “culture, strategy and competitive position all influence risk appetite” (p26).
Therefore, Semple (2007) highlights the importance of risk appetite but, as may be expected, does state that, “Consequently, articulating risk appetite is a complex task………………………” (p25).
a) In view of Semple’s statements (above) you are required to provide a critical view on whether or not you believe it is desirable, and possible, for a company to effectively articulate its risk appetite.
Your discussion should encompass a wide range of literature and should be fully supported by a good deal of academic underpinning (i.e. references). There should be evidence of wide-reading in addition to the article by Semple (2007).
b) Given your work on the previous tasks you are required to provide a detailed view on the ‘risk appetite’ displayed by Ryanair. You should provide full support for any assertions that you make with regard to this response.
(Total 100 marks)
You are required to present well structured answers of no more than 4,000 words (2,000 words each part) in total.
ALL parts of the assignment carry equal weighting.
Learning Outcomes Assessed
• Understand the all encompassing nature and importance of risk management
• Use both qualitative and quantitative techniques in order to evaluate and manage risk
• Consider the external and internal influences on corporate management approaches to risk management
• Appreciate the importance of disaster scenario planning in today’s economic environment.
It may be that, due to the possible diversity of student response, not all learning outcomes will be covered by each student.
Assignments will be graded according to the following criteria:
• Evidence of critical judgement in selecting, ordering and analysing content in order to present a sound argument
• The demonstration and understanding of relevant concepts and models
• The demonstration of insight and originality in responding to the assignment
• The extent and level of research undertaken and the degree to which this research is appropriately referenced.
• It is important that the assignment is forward looking and is not an analysis of historic risk.
• Students are required to relate specific and actual identified risks, assessment and strategy to Ryanair. The use of generic theoretical models and checklists should only be used when related specifically to Ryanair.
Students should be quite clear on the fact that they will not be assessed on the ‘quantity’ of risks identified but on the quality of the work in assessing the ‘risks’ and formulating appropriate strategies.
All of the usual University regulations will apply with regard to the late submission of work and plagiarism.
You are reminded that this module has one piece of coursework which represents 100% of the module assessment. You are required to achieve a minimum of 50%, overall, in order to be successful.
How to succeed in Phil’s assignments!
• Ultimately this depends on to what extent you want to achieve a good grade! Those students who put time and diligence into their assignments are generally rewarded for their efforts.
Important specific points to remember
• Think about the question and the structure of your answer – you need a clearly defined structure which addresses the specific issues of the assignment. Therefore, PLAN your response very carefully before beginning to write. Think to yourself:
o What is the question asking me to do?
o Is what I am writing focussed on the question – is it relevant – or am I just including it because I found it!!?
• Make sure that you read all articles which are referred to in the assignment
• Never write anything in your assignment that you do not understand
• Do not use ‘bullet points’ to any great extent – this tends to preclude analysis and explanation
• Think about presentation
o Contents page
o Page numbers
o Use short sentences
o Use many short paragraphs – a new paragraph for each different idea.
o Do not use too many headings – this tends to prevent the flow of the work
o Where an assignment is divided into parts 1) 2) 3) etc – answer in that format – do not merge answers – it is impossible for the assessor to mark these easily.
• When referencing
o NEVER reference to Wikipedia, Investopedia, mbaessays.com, chaeatsrus.com etc – these websites are all unsubstantiated – the material on these can be written by anyone – ALWAYS use academic literature (journal articles, text books etc – these have been refereed by other academics – unless you are looking on reliable websites for data and statistics)
o If you include a quote in “speech marks” you need to also include the page number from the source as well as the author name and date – no page numbers if there is no quote
o All the references that appear in the script should appear in your Reference List – it is not a Bibliography
o The Reference List should be in alphabetical order by author surname (family name)
• Working Practice
o Discuss with colleagues but type up your work separately.
o Never give your work to another student in an electronic format – you will be guilty of collusion, as well, if they use any of it
o Do not leave your work accessible on a university computer whilst you are not present
o Never share a file where calculations/spreadsheets are concerned
o Keep a back-up of your work – computer problems are not a reason for an extension
o Print the work leaving yourself plenty of time before submission
o Never sub-contract your work to a third party – it is generally easy to identify!