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Finance and Risk Management in Engineering

The finance function in an organization is crucial for obtaining and utilizing funds necessary for operations. An engineering firm requires funds for daily operations, credit services, inventory purchases, and major assets. Risk management involves identifying and addressing potential risks through various methods such as avoidance, retention, reduction, and shifting of risks.

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5 views1 page

Finance and Risk Management in Engineering

The finance function in an organization is crucial for obtaining and utilizing funds necessary for operations. An engineering firm requires funds for daily operations, credit services, inventory purchases, and major assets. Risk management involves identifying and addressing potential risks through various methods such as avoidance, retention, reduction, and shifting of risks.

Uploaded by

Alcoholic Me
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

[Link] is the Finance Function of an organization?

-The finance function in business is obtaining and utilizing monies required for optimal operations.
Finance is the heartbeat of a company; without it, operations would be disrupted. It is the source of funds
for every organization; it provides and obtains funds.

2. What are the 4 major fund requirements of an engineering firm

-To finance daily operations.


 - To finance the firm's credit service.
 - To finance the purchase of inventory.
 - To finance the purchase of major assets.

3. What are the 6 major sources of funds to finance an engineering firm?

A. Cash Sales
 B. Collection of Accounts Receivables.
 C. Loans and Credits
 D. Sales Assets
E. Ownership Contribution
 F. Advances from Customers

4. What is Risk Management? What are the methods in dealing with risks?

The technique of applying processes, strategies, and instruments to manage these risks is known as risk
management. Risk management is concerned with detecting what could go wrong, assessing which risks
should be addressed, and putting in place measures to address those risks.

Methods in dealing with risks:

 A. risk may be avoided


 B. risk may be retained
 C. hazards may be reduced
 D. losses may be reduced
 E. risk may be shifted

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