Minot State University Risk Identification and Risk Management Analysis

Part 1: Based on the information that you learned about the different types of risk, scenario, and sensitivity analysis, you will be identifying the risks that will be associated with the IPO and global expansion. Using your readings from this module:

Determine how each of the following risk exposures affects the international expansion of Apple Inc.

1. transaction risk
2. translation risk
3. economic risk

Include how you would use sensitivity and scenario analysis to make your 

recommendation. Spell out the advantages and disadvantages of each method.

Part 2: Risk management Analysis

Financial managers should be able to determine how risk factors into a company’s decision to expand or start a new project.

Use Mergent Online to access Apple Inc.’s annual report to its stakeholders, then complete the following activities:

Retrieve and analyze the steps that the selected company uses for scenario and sensitivity analysis, risk management techniques, and how companies mitigate currency fluctuation risk for the launch of a new product/project.