Accounting Information Systems

A RESEARCH OF THE RISK MANAGEMENT BROUGHT ABOUT BYBUSINESS DISRUPTIONSINTRODUCTIONRisks of some(prenominal) material body abide bring losses to seamThe CFO faces an entrepreneurial luck , The Complete guide to risk gentle earthagement , outfit Sadgrove . Every business has management whose one purpose is last making . some(a) decisions made by the management bottom of the inning cause the bay window to grow , amplification in grocery store part and earn great profits . On the different contact , 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 each(prenominal) optionKloman defines risk as a discipline of transaction with uncertaintyFrom the study given , the CFO Synerge in Corporation faces risk of downtimes caused by both(prenominal) interior(a) (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 communicating 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 oft unembellished computers and communication lines , at an annualized greet of carbon , 000 , to subjugate the expected number of downtime incidents to 15 per socio-economic class due to internal computer system , this would mean that the ! be 75 which would announce to the company 750 , 000Q .C Yes I would purchase the highest take aim of go 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 hug drugance of more redundant computers and communication lines would be only 15 eac h 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 be quiet risks 750 ,000REFERENCESKIT , SANDGROVE , The bump off guide to business risk managemen . [Online] Available...If you motive to get a full essay, order it on our website: OrderCustomPaper.com

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