Question

Hi Max. You’ve identified some very important takeaways from the course! For anyone pursuing a career in finance or management, it’s imperative to be able to navigate, interpret, and communicate financial reports. This improves a professional’s ability to make good decisions, effectively manage risk, and evaluate new potential business opportunities including valuations for potential mergers and acquisitions. Class, after taking this course, Financial Reporting, Financial Statement Analysis, and Valuation, how has your perspective changed regarding the various risks that we encounter in business? Brandy

Answer 1

This is a guideline answer, I suggest you to frame final one with your own additional points.

• Every business has its own set of risks. Some have unethical employees who may embazel, some have employees who are honest but not so competent and often make errors. After understanding the whole process of how transactions are recorded to how they are checked by auditors and what is their implications if went wrong, I am of the view that though risks exist, though checks for those risks also exist, but there shall always be the chances of fraud or errors. With changing time and technologies, though there may not be the conventional fraud and error but they would still exist at high level.
• Another risk which we face today is of information overload. In this digital era, while performing activities like valuation, one can have varied data over a land for example which may dilute the relevance of useful information as there is alwys an information not of use also.