Risk Assessment Eric Is the Owner of Handyman Unlimited, a Company Which

question 54

Essay

Risk assessment
Eric is the owner of Handyman Unlimited, a company which does "odd jobs" and small home repair. Eric uses his personal line of credit, based on the value of his home, to finance the business. The company's risk exposures include those listed below; use the detailed elements of Brown's risk taxonomy (not the four categories) to classify each risk.
___________ 1. A handyman steals small tools and sells them on eBay.
__________ 2. After Handyman Unlimited became a publicly traded corporation, auditors discovered
one of the officers had committed fraud against the company.
__________ 3. An unhappy employee introduces a virus to the company's computer network.
__________ 4. Handyman Unlimited attempts to expand its operations to Africa.
__________ 5. Payroll expenses often drain the company's cash reserves.
__________ 6. The bookkeeper records a cash sale by debiting sales and crediting cash.
__________ 7. The company's billing policy requires customers to pay within 60 days of service.
__________ 8. The value of Eric's home may drop significantly.

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Definitions:

Motor Scooter

A two-wheeled vehicle with a step-through frame and a platform for the operator's feet, powered by a small engine.

Travel

The movement of people between distant geographical locations, which can be done by foot, bicycle, automobile, train, boat, bus, airplane, or other means.

Sound Registering

The process of detecting and recognizing sound waves by auditory systems.

DbA

DbA refers to a unit of measurement for sound intensity, adjusted to the human ear's response to different frequencies, indicating the apparent loudness of sounds.