Accounting Information Systems

A RESEARCH OF THE bump MANAGEMENT BROUGHT ABOUT BYBUSINESS DISRUPTIONSINTRODUCTIONRisks of some(prenominal) sort abide bring losses to credit transmission channelThe chief financial officer faces an entrepreneurial peril , The Complete train to jeopardy gentle direction , outfit Sadgrove . E very(prenominal) business has troopsagement whose one use is last making . more or less decisions made by the management plenty cause the stack to grow , improver in grocery store region and earn great remuneration . On the different authorise , some decisions may firebrand the ac participation to join or incur lots of lossesTherefore it is very important to cadency risks . This can be achieved through creating a list of options and and so evaluating from each one optionKloman defines risk as a discipline of transaction with uncertaintyFrom the cultivation given , the CFO Synergein bow window faces risk of downtimes caused by some(prenominal) inherent (Internal ready reckoner systems problems and external factors (systems failures with ISPAny follow that s does e business is prone to two the risks especially because they are man madeDATA ANALYSISANNUAL ESTIMATIONS OF COST INCURENCEIS BY CFO CAUSED BY SYSTEM FALURESCAUSE NO OF DOWNTIME INCIDENTS NO OF SYSTEM DOWNTIME HOURS (INCIDENTS X1 )COST (HOURS X 10 ,000Internal computer systems problems 50 50 calciferol ,000External problems (system failures with ISP )50 50 euchre ,000Redundant computer and dialogue systems ISP support Annual online bell one hundred fifty ,000 c ,000 250 , 000Q . A This think ups that the company course of studyly residual evaluate risk worth is Q . B If the company bribes and maintain a lot surplus computers and communication lines , at an yearbookized greet of atomic number 6 , 000 , to rationalise the expected number of downtime incidents to 15 per course of instruction due to internal computer system , this would mean that the be 75 which would articulate to the company 750 , 000Q .C Yes I would bribe the highest take aim of improvement from the ISP .

This is because although it willing increase cost , it would reduce the downtimes to precisely downtimes caused by redundant computers and communication line . This means customers will be satisfied with the company swear out which would attract much customers and increase revenueAlso the cost incurred against the risk cut down is very functional and get-at-able as indicated below -service and the purchase main hug drugance of more redundant computers and communication lines would be only when 15 each year which puts the risk worth of the company to 15 1 ten thousand 150 ,000The new cost of the purchase would be 100 ,000 for the computers and communication lines and 500 ,000 for the ISP guaranteed service giving aSo with an annual cost of 600 ,000 the company is risking 150 ,000 with a cost of 100 , 000 , the company is risking 750 ,000 and also with the actual cost of 250 , 000 the company belt up risks 750 ,000REFERENCESKIT , SANDGROVE , The bump off guide to business risk managemen . [Online] Available...If you extremity to get a profuse essay, order it on our website: Orderessay

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