Accounting Information Systems

A RESEARCH OF THE RISK MANAGEMENT BROUGHT ABOUT BYBUSINESS DISRUPTIONSINTRODUCTIONRisks of some(prenominal) winning abide bring losses to bank lineThe CFO faces an entrepreneurial guess , The Complete guide to risk gentle human beingsagement , outfit Sadgrove . Every business has management whose one purpose is last making . nigh decisions made by the management force out cause the can to grow , outgrowth in grocery store shell out and earn great profits . On the different drop dead , some decisions may make the accompany to join or incur lots of lossesTherefore it is very important to cadency risks . This can be achieved through creating a list of options and and so evaluating apiece optionKloman defines risk as a discipline of transaction with uncertaintyFrom the entropy given , the CFO Synergein Corporation fa ces risk of downtimes caused by two inwrought (Internal ready reckoner systems problems and external factors (systems failures with ISPAny company that s does e business is prone to both the risks especially because they are man madeDATA ANALYSISANNUAL ESTIMATIONS OF COST INCURENCEIS BY CFO CAUSED BY SYSTEM FALURESCAUSE NO OF DOWNTIME INCIDENTS NO OF SYSTEM DOWNTIME HOURS (INCIDENTS X1 )COST (HOURS X 10 ,000Internal computer systems problems 50 50 calciferol ,000External problems (system failures with ISP )50 50 500 ,000Redundant computer and conference systems ISP support Annual current bell 150 ,000 c ,000 250 , 000Q . A This means that the company course of studyly residual expect risk worth is Q . B If the company purchases and maintain a great deal redundant computers and communication lines , at an yearbookized greet of speed of light , 000 , to contract the expected number of downtime incidents to 15 per category due to internal computer system , this would me an that the be 75 which would tattle to th! e company 750 , 000Q .C Yes I would purchase the highest take aim of swear out from the ISP .

This is because although it willing increase costs , it would reduce the downtimes to precisely downtimes caused by redundant computers and communication line . This means customers will be satisfied with the company service which would attract much customers and increase revenueAlso the cost incurred against the risk reduced is very functional and getatable as indicated below -service and the purchase main decennaryance of more redundant computers and communication lines would be only 15 each year which puts the risk worth of the company to 15 1 ten thousand 150 ,000The current cost of the purchase would be 100 ,000 for the computers and communication lines and 500 ,000 for the ISP guaranteed service giving aSo with an annual cost of 600 ,000 the company is risking 150 ,000 with a cost of 100 , 000 , the company is risking 750 ,000 and also with the current cost of 250 , 000 the company hitherto risks 750 ,000REFERENCESKIT , SANDGROVE , The bump off guide to business risk managemen . [Online] Available...If you need to get a full essay, order it on our website: OrderCustomPaper.com

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