Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Efficient frontier analysis in srm

31/10/2020 Client: papadok01 Deadline: 24 Hours

Discussion1

Explaining the results of Efficient Frontier Analysis to non-technical decision-makers

The implementation of Efficient Frontier Analysis in an organization helps the process of strategic risk management to encompass and advanced analytical technique. The outcomes derived from it can easily be acknowledged and utilised by the non-technical decision-makers of the organisation as well. With the private utilization of Efficient Frontier Analysis, the decision-maker can easily consider identifying Complex property and developing casualty risk profiles. It has been observed in the considered case study that the most convincing organizational decision-making practices to determine efficient risk management need extensive acknowledgement of the governance structure followed by the processes and the varieties of tools used in it. In addition to it, they are also subjected to be developed on the basis of the guidance and principles of ISO 31000 followed by the guidance of implementation empowered by Australian and New Zealand handbook HB 436 (Fraser, Simkins & Narvaez, 2014). The consideration of Efficient Frontier Analysis emphasizes the hierarchical roles within an internal audit function as well as the organization and risk management function.

The results of implementing Efficient Frontier Analysis depend in-depth assessment of the risk portfolio volatility followed by the pricing structure acknowledged through decision-making. Furthermore, the considered case study also explains that the implementation of Efficient Frontier Analysis also needs to analyze the insurance layering efficiency to determine the risk portfolio application in order to ensure the catastrophic loss potential within the decision-making practices of strategic risk management (Rezaeiani & Foroughi, 2018). Additionally, a business organization implementing it can also become capable of analyzing and resolving the control break down easily with the identification of risk origins, actors, causes and consequences precisely. With the help of proper strategic management, the non-technical decision-making practices can be functional through a risk appetite framework that influences risk control framework. both these further impact on the emergence of the dynamic risks followed by integrated enterprise risk profile and scenario and stress testing by enabling untapped opportunities.

Recommendations assuming the risk appetite

The notion of risk appetite is strongly aligned with risk tolerance to influence the scenario and stress testing abilities to develop an analytical framework. The fundamental purpose of this Framework is to drive multiple sets of discussions based on analytical information to help the decision-makers in determining the risk profile and lead the organization to constitute competitive opportunities. It has been observed that the risk appetite in association with the risk tolerance helps them in categorizing the risks and further reframe them as opportunities (Zhou & Xu, 2016). The decision-makers are recommended to acknowledge this concern in order to determine the position control framework.

Identifying risk appetite also enables control actions for the decision-makers considering the components of market share, product or service provision, market profit, social impact, stakeholder levels and other benefits (Hillson & Murray-Webster, 2017). The decision-makers are also recommended to acknowledge SRM over the traditional risk assessment in order to two distinct advantages risk profiles from the exploitable with a profile in order to determine sustainable efficiency and preventing competitively noisy environment by foreseeing the risk dynamics categorically through risk appetite.

Discussion2

For an organization to access risk versus return of each proposed project, their project lead should use the concept of efficient frontier analysis. If the frontier analysis is used efficiently, a company can easily understand and find the high profitable project to invest in. In addition, the information, which is gathered during this process, can be used to develop decision structure, which is eventually used by the project managers to assess a project. As per (Fraser, 2014), the idea of using the idea of using the concept of efficient frontier analysis is to help investors to invest in a project that gives high returns against risks. This process is usually represented by a graph. The value on the X-Axis of the graph is risk and the value on the Y-Axis of the graph is investment returns. A line is drawn to connect the highest portfolio return that a project can give with the existing risks factors. This line is the efficient frontier line and the analysis.

I would prefer using a simple graph, so that a non-technical person can easily understand the point. Additionally, this is a simple approach too, not all the points that fall under the efficient frontier line is optimal, therefore making it a not-a-good-idea-to-implement kind of project. Further, dumping a bunch of statics and random facts is going to be less fascinating to a non-techie.

The first and foremost recommendation from my end is, making sure the information is well recorded in the graph, so that we can obtain accurate information. If not, the main purpose of the analysis will never be achieved.

Discussion3

Most investment choices involve the trade-off between risk and reward. The “Efficient frontier” is a modern portfolio theory tool that shows investors the best possible return they can expect from their portfolio, given the level of volatility they are willing to accept. The chart here demonstrates the influence of concept. The vertical axis represents the expected rate of return. The horizontal axis signifies the investors’ risk tolerance. The frontier is a line curve, which shows the potential yield of portfolio given a degree of risk. Optimal portfolios should lie on this curve. In addition, the portfolios that fall below the frontier curve represent the less ideal mix of investment because with the same risk one could achieve a greater return. Any portfolio above this curve is impossible.

Take Chris who owns portfolio A. Currently, his investment generates the combined yield of 8%. Based on the efficient frontier, however, Chris can be achieving the same level of return with a considerably safer mix of investments with portfolio B. Both portfolio offer the same level of return but portfolio B has less risk. The job of investment advisor who uses modern portfolio theory is to identify the basket of securities that get as close as possible to the frontier. Investors should realize there is no preferred point on the frontier. A young professional probably is willing to accept a high level of risk and will therefore want to be somewhere near to the right of the curve. For an older adult, nearing retirement, a portfolio further to the left maybe ideal.

What is important is to get as close as possible to the efficient frontier whatever your risk profile may be. The effort to take advantage of complex data techniques was, in part, stimulated by the evolving risk management framework integration into what is now being modestly referred to as enterprise risk management (ERM) or strategic risk management (SRM).

Within the 2013 Risk and Insurance Management Society (RIMS) SRM Implementation Guide, the concept of strategic risk management is defined as a "business discipline that drives the deliberations and actions surrounding business- related uncertainties, while uncovering untapped opportunities reflected in an organization's strategy and execution."

What distinguishes this definition from previous descriptions of enterprise wide risk management (ERM) approaches is the effort to sustainably deliver a robust fact-based strategic dialogue across the entire organization. This new strategic dialogue requires an analytical framework that is dynamic and encompasses all areas of an enterprise. In this chapter, we demonstrate how the use of efficient frontier analysis (EFA), and many of its derivative techniques, provides a robust portfolio approach to hazard, operational, market, and reputational risk domains.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Finance Homework Help
Custom Coursework Service
Financial Hub
Instant Assignments
Writer Writer Name Offer Chat
Finance Homework Help

ONLINE

Finance Homework Help

I have a Master’s degree and experience of more than 5 years in this industry, I have worked on several similar projects of Research writing, Academic writing & Business writing and can deliver A+ quality writing even to Short Deadlines. I have successfully completed more than 2100+ projects on different websites for respective clients. I can generally write 10-15 pages daily. I am interested to hear more about the project and about the subject matter of the writing. I will deliver Premium quality work without Plagiarism at less price and time. Get quality work by awarding this project to me, I look forward to getting started for you as soon as possible. Thanks!

$70 Chat With Writer
Custom Coursework Service

ONLINE

Custom Coursework Service

Hey, Hope you are doing great :) I have read your project description. I am a high qualified writer. I will surely assist you in writing paper in which i will be explaining and analyzing the formulation and implementation of the strategy of Nestle. I will cover all the points which you have mentioned in your project details. I have a clear idea of what you are looking for. The work will be done according to your expectations. I will provide you Turnitin report as well to check the similarity. I am familiar with APA, MLA, Harvard, Chicago and Turabian referencing styles. I have more than 5 years’ experience in technical and academic writing. Please message me to discuss further details. I will be glad to assist you out.

$70 Chat With Writer
Financial Hub

ONLINE

Financial Hub

Hey, I have gone through your job posting and become very much interested in working with you.I can deliver professional content as per your requirements. I am a multi-skilled person with sound proficiency in the English language for being a native writer who worked on several similar projects of content writing and can deliver quality content to tight deadlines. I am available for both online and offline writing jobs with the promise of offering an incredibly responsive and supreme level of customer service. Thanks!

$70 Chat With Writer
Instant Assignments

ONLINE

Instant Assignments

Good day dear client, I am a full-time freelance writer with years of experience. My strongest strengths are strong dedication to duty, reliability, quality and excellence. I am going to do an outstanding job for you, kindly PM me and let us commence. Thank you so much in anticipation of your positive response. Thank you very much.

$70 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Unit 8 discussion - Track software inc integrative case 2 - Insurance and Healthcare Reimbursement - Supply chain - Common services platform collector - Certified texas contract manager - Discussions - Palmolive antibacterial hand soap msds - I am not your negro thesis - Peaceful end of life theory model - History - 3 month euribor futures - Bbc the fantastical world of hormones worksheet answers - Nursing 1 - Dan murphys lazy yak - Ka of an indicator lab report answers - Mental status exam write up - Cal g to kcal g - Which type of variance causes operating income to be greater than the budgeted operating income? - Empirical laws of static and kinetic friction - Car tyre repair kit kmart - MHA/516 - Any good tutor in Accounting & finance field - What are pole vaults made of - One step equations with fractions worksheet - Social psychology 10th edition pdf aronson - Mod pizza average unit volume - Aldi urea foot cream - Life cycle phases in an epm system - Python coding help - Arabian peninsula geography worksheet - Direct and indirect sunlight seasons - Analysis essay - Amusement park industry swot analysis - 730 bus timetable uxbridge to hemel hempstead - Lección 8 lesson test answers - Nature essay - Second order low pass filter gain - Definition of subsurface mining - Practical Connection Assignment - Statement of internal control schools - Management Accounting Coursework - Cinnamon and warfarin interaction - Information technology questions and answers pdf - Bank of baroda form no 60 - Ucl perioperative medicine online - The pitcher poem by robert francis - What problems and challenges did home depot experience - Inventory management sap bi - Advertising and Logical Fallacies - Walt disney world resort mission statement - Erd case study examples - Psychoanalytic theory of human development - Unisa microsoft office download - How to use attributive tags - W7 bus - The writing process part 2 - The jamestown colony finally attained a measure of prosperity from - Business of Sport - I love you daddy shrek scene - What would happen to an ecosystem if the decomposers disappeared - Childhood by margaret walker analysis - Shell oil in nigeria case study pdf - Harding university high school - Kim Woods only - Farinelli movie download - How to write a headline for a feature article - PP6 - Cost of the merchandise sold schedule first-in, first-out method portable dvd players - Minimum wage interest groups - Optical flat black paint - Sorin inc a company that produces - Mckesson hr - Thandi coaches times from birmingham to southall - What did the toothless old termite say when he entered - Is a dcp an environmental planning instrument - Belly button biodiversity github - Trig e track merringtons - Multiple choice questions on inventory accounting - Carol chen miss san francisco - What does cpu_opt stand for - Bass clef practice worksheet - Advantage of k map - 8 cents off petrol woolworths - There's no such thing as business ethics pdf - Hierarchy of cues speech therapy - Aqa physics formula sheet - Anthem data breach case study - Effect of stress on performance ppt - A private college advertised that last year - Blue bank remote deposit capture project - Give me liberty 5th edition volume 2 - Business activity monitoring tools - Social work biopsychosocial assessment example - Paper writing - Devry econ 312 week 3 quiz - The middle ages timeline - Manage diversity in the workplace bsbdiv501 - Health sciences library mcmaster university - Global leadership foundation emotional intelligence quiz