UArizona Global Campus Risk Management in Businesses Discussion

Prior to beginning work on this discussion, review the assigned text chapters and the articles listed in Week 1 Required Resources. You and a colleague decided to start a business, and based upon your work experience you know the importance of finance to organizational success. In fact, you have experience with many corporate finance activities; however, you are sure that a start-up business faces challenges no longer relevant to established organizations. You know it is important to identify differences and understand how the differences affect your effort to develop a financial plan for your start-up.

You are going to create an initial discussion post that addresses the two differences between established and start-up businesses below:

• Entrepreneurs usually have little or no historical operating data to work with, something which affects financial predictions.
• Risk management activities for a startup do not use the standard procedures applicable to corporate and established businesses. For example, mitigating risk by diversifying is not a practical option for a startup.

How do these differences affect the entrepreneur’s effort to plan?

In your response focus on the following items (you are encouraged to go beyond the course text for information):

• Evaluate the significant assumptions associated with traditional finance procedures and how these assumptions affect the application of financial procedures in an entrepreneurial environment, especially when making financial projections or establishing risk-management procedures. You should describe at least two assumptions.
• Analyze at least two things an entrepreneur must know to effectively cope with an operating environment in which traditional finance assumptions do not apply and in which risks abound.
• Offer your peers a link to a video or an article that complements your answer to the items above.

Bosl, R. (2017, April). Seven ways to transform your executive resume from good to great (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/forbescoachescouncil/…

• In this article, the author provides information about presenting business experience and related skills that may assist you in the Introduction video and Team Charter assignment this week.
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Lavinsky, D. (2013, December). Business plan outline – 23 point checklist for success (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/davelavinsky/2013/12/…

• In this article, the author provides information about summarizing business skills that may assist you in DQ 1, DQ 2, and the Team Charter assignment this week.
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Lavinsky, D. (2013, October). Strategic plan template: What to include in yours (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/davelavinsky/2013/10/…

• In this article, the author provides information about strategic plan contents that may assist you in DQ 1, DQ 2, and the team assignment this week.
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The Muse. (2014, August). The resume summary statement: When you need one and how to do it (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/dailymuse/2014/08/28/…

• In this article, the author provides information about summarizing business skills and may assist you in DQ 1, DQ 2, and the team assignment this week.
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