208-330 Business Risk Management

208-237 Business Finance

This subject expands the concepts of risk introduced in Buisness Finance with emphasis on rural and regional businesses, including: identification of risk and attitudes to risk; and assessment and management of risk. The subject also introduces techniques to analyse risky business options including breakeven, scenario and probability analysis.

Topics include: risk, uncertainty, probability and volatility; risk and return; rural and regional business risk - industry risk (biological systems, fire, storm, political risk, occupational health and safety); business risk - enterprise specific (commercial and legal relationships, human behavior); financial risk (price, credit, interest rats, borrowing); principle of increasing risk; attitudes to risk; risky decision analysis (break even, scenario, probability); capital budgeting and risk; portfolio theory, diversification, risk efficiency, risk dominance; risk management techniques (business structure, succession planning, contracts, futures, options, insurance, quality assurance).

A 3 hour end-of-semester examination (50%) and assessment of tutorial worksheets (50%, equivalent to 5000 words maximum).