Risk in the business world Essay Example | Topics and Well Written Essays - 250 words

Risk in the business world - Essay Example There are four basic ways in which a CFO can handle risk; avoid, reduce, assume, or transfer the risk (Silverman, n.d.). A CFO’s attempts should be directed at managing risk in the very order as mentioned here. Personally, a CFO handles risks by collaborating with and influencing the CEO, and also by maintaining independence (Egon Zehnder International, 2008). The challenge for a CFO is to focus on controls, and at the same time, on business partnering. Being able to balance the two conflicting claims enables a CFO to deliver business results. Professionally, a CFO handles risk by trying to assess it in advance and informing the concerned authorities so that it can be managed in time and effectively, if encountered. The best source of risk assessment is historical records and past experiences coupled with expert opinion. In addition, various software like Primavera Risk Analysis can be used to assess and manage risks involved in a