Financial Risk Analysis

As a growing company, we are interested in understanding the state of the market we are in, and our organization’s level of risk. In this project, students will assess our company’s risk by building a financial risk model to determine our best course of action. Students will perform a sensitivity analysis to help us eliminate some of the uncertainties we face and determine the reliability of risk estimates. This may involve: Using mathematical and statistical tools to analyze private and public data. Evaluating metrics associated with the risk level of our company such as volatility, correlations for returns, forward/futures contracts, cash flows, variance, and economic states. Building a financial risk model including sensitivity analysis to determine the reliability of the model’s findings. Creating a report to present the results and recommendations from various forms of analysis to be presented to the project manager.

Financial Business Plan

We are excited to be launching a new business, (name of business and brief description of what the company will do). With any launch, having a financial plan is one of the keys to success, and we would like to involve students in creating one for our new venture. This will involve several different steps for the students, including: Learning about our business strategy from various employees to become familiar with our goals, mission, and products. Creating forecasts using Excel (or another financial software) for sales in the first year of operation as well as an income projection (conservative and aggressive). Working with our team to develop an expense budget. Conducting a break-even analysis timeline using financial projections. Reporting on projected assets and liabilities. Including visual comparisons such as graphs and charts to show the differences between the conservative and aggressive income projection.