Specific Risk Factors

IDENTIFICATION AND DISCLOSURE OF RISK FACTORS IN AN ORGANIZATION

Select a company listed in the Bursa Malaysia from the following URL:

http://www.bursamalaysia.com/market/listed-companies/

Download its latest annual report and visit its company website to gain an insight into the nature of its business. You may also need gather more information from other reliable sources selected from media reports, analyst reports, etc. to obtain more in-depth understanding into the running of its business.

You are required to:

Prepare a 2,000 word report on the company on the following areas:

1. Background of the company

For the company you have chosen, highlight important aspects of the nature of its business and activities that are related to identifying the risk factors affecting its business.

(Guideline: 300 words)     (4 marks)

2. Identification of risk factors in the company’s business

Using the main categories of credit risk, market risk and operational risk, identify specific risk factors that could significantly affect the business performance and sustainability of the company you have chosen. For each risk factor, describe a worst case scenario and assess its impact on the financial performance of the company.

(Guideline: 1,000 words)     (15 marks)

3. Disclosure in the Annual Report

With reference to your selected company’s Annual Report, critically discuss the contention that the significant risk factors affecting the business of the company should be disclosed in this Annual Report under the section, Statement on Risk Management and Internal Control.

(Guideline: 700 words)    (8 marks)

Be sure that the content, format and style of the assignment conform to good practice including Grammar, Spelling & Writing     (3 marks)