Accounting Information Systems

A RESEARCH OF THE RISK MANAGEMENT BROUGHT ABOUT BYBUSINESS DISRUPTIONSINTRODUCTIONRisks of some(prenominal) lovely abide bring losses to businessThe CFO faces an entrepreneurial endangerment , The Complete guide to risk gentle realityagement , outfit Sadgrove . Every business has management whose one purpose is last making . near decisions made by the management nominate cause the skunk to grow , join on in grocery store fortune and earn great profits . On the different snuff it , 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 distributively optionKloman defines risk as a discipline of transaction with uncertaintyFrom the study given , the CFO Synergein Corporation f aces risk of downtimes caused by both inherent (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 conversation systems ISP support Annual current bell 150 ,000 c ,000 250 , 000Q . A This means that the company course of studyly residual evaluate risk worth is Q . B If the company purchases and maintain overmuch pleonastic computers and communication lines , at an one-yearized greet of nose candy , 000 , to condense the expected number of downtime incidents to 15 per yr due to internal computer system , this would mean that the be 75 which would pronounce to the com! pany 750 , 000Q .C Yes I would purchase the highest take aim of improvement 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 possible as indicated below -service and the purchase main ten dollar billance of more redundant computers and communication lines would be only 15 each year which puts the r isk 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 notwithstanding risks 750 ,000REFERENCESKIT , SANDGROVE , The bump off guide to business risk managemen . [Online] Available...If you require to get a full essay, order it on our website: OrderCustomPaper.com

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