Identification of Risk
write a paper that introduces a firm of your choosing that is based in the United States. You will identify the types of economic risk that certain broad varieties of activities expose business entities to in general. You will then identify and contrast various types of risk that your chosen firm is subject to, including idiosyncratic, systematic, and systemic. In addition, you will be required to consider the effect of macroeconomic variables on risk and illustrate your findings graphically or mathematically.
Specifically, the following critical elements must be addressed:
I. Identification of Risk
- Using the aspects of risk outlined in Chapters 5–8, identify the types of economic risk that certain broad varieties of activities expose business entities to.
- Identify and describe two areas of your chosen firm’s operations that are subject to significant economic risk of each of the following: idiosyncratic, systematic, and systemic varieties.
- Identify specific macroeconomic variables that are associated empirically with an increase in the identified varieties of risk, and which may indicate an increase or decrease in systematic and systemic risk specifically.
- Graphically and/or mathematically illustrate a movement in macroeconomic variables that would theoretically be associated with this risk.
Guidelines for Submission: Paper must be submitted as a 2- page Microsoft Word document with double spacing, 12-point Times New Roman font, one- inch margins, and at least two sources cited in APA format.