Financial Managment Principles

INTERNAL & EXTERNAL RISK FACTORS 2

Abstract

On Your Mark Corporation is releasing its first annual stockholder’s report now that the company has gone public. OYM’s division managers and chief officers were busy compiling an annual report and analysis for its investors, shareholders, regulators, and credit agencies. This annual report will also include its internal and external risk factors for the company as well. We know that when these reports are written to these stakeholders and others who support that company, there can be some negative issues in the report that may have additional questions for our stakeholders. Regardless of these various factors that are presented to the stakeholders, they may want to know how these risk factors can be overcome in order for OYM to be successful and continue to prosper.

INTERNAL & EXTERNAL RISK FACTORS 3

The operations of internal and external risk of a company operate in two distinctive ways when it comes to auditing. First the internal audit includes operational compliance and financial work, while its external audit only deals with the financial aspects. Rules and regulations of these specific audits have specific guidelines that auditors must follow and comply according to the standards written from the American Institute of Certified Public Accounts (AICPA).

Risk Analysis for On Your Mark:

Business risks have a subset of categories that are relevant in the world of business such as technology: are their software and hardware update to reflect its current business practices. Or credit monitoring: are its payments up to date or are there any missed payments on OYM’s credit report or are its monthly payments in a timely manner. Other business risks include liquidity, data, strategic, operations, and regulatory risks. Almost every aspect of an organization has business risk but, having a mitigation strategy can help a firm identify these risks and devise a plan to correct them as quickly as possible....