If managers could have just one wish, many would ask for a crystal ball. With this tool, there would never be any worry about risk. The manager could look into the crystal ball and know exactly what will happen with each decision. Unfortunately, we do not have this luxury and must use other tools and techniques to determine the risks we face for the decisions we make. Understanding the types of financial risks will be the focus of this week’s discussion question.
For this discussion, post a 3–5 slide narrated PowerPoint presentation in which you address different types of financial risk and discuss the implications for decision making in health care organizations.
Use these questions to guide your development of the presentation:
- What is risk?
- What is financial risk as it relates to required return?
- What are stand-alone, corporate, and market risks?
- What is the relevance of risk measures in the financial decision-making process?
Be sure to respond to at least one of your classmates’ posts.