Walden Wk4 IT System Investment Coefficient Variation Discussion Responses Respond to two or more of your colleagues in one or more of the following ways:~

Walden Wk4 IT System Investment Coefficient Variation Discussion Responses Respond to two or more of your colleagues in one or more of the following ways:~ Provide insights or contrasting observations regarding risk assessment that you gained from reading your colleagues’ posts.~ Describe an example in which risk assessment was effectively used or when decisions were made without adequate risk assessment, and explain the results.~ Describe important findings about risk assessment that you observe from your colleagues’ posts and how you might be able to use lessons learned in your organization. Wesley Garrett
RE: Discussion – Week 4
The organization that I am familiar with that I am going to use for this discussion is Enterprise Rent-A-Car. As
a manager one service that I propose that supports organizational strategy is giving customers the option to
rent cars for as little as an hour at a time on a ride share program. Right now the lowest amount of time you
can rent for is one day no matter if you return it before the 24 hour hours is completed. With this pandemic
going on, we have lost considerable business at our airport location because not many are traveling. I believe
this service supports the organizational strategy of getting more cars on the road to increase profits with
minimal risk because all drivers will be vetted though our staff as currently constructed.
Two risk management tools that I would deploy to measure the overall risk in the organization are the
sharpe ratio and the coefficient of variation. Analysts who use the sharpe ratio uses both historical returns
data and standard deviation to determine calculations on expected returns (Brigham & Houston, 2019). The
sharpe ratio is used to look at historical data before the change as well as how the sales for the hourly rentals
deviate from the standard. This outlook helps my company to determine if continuing to offer hourly rentals
is profitable after a few weeks of service. The second management tool I am going to use to measure risk to
businesses is the coefficient of variation. “The coefficient of variation shows the risk per unit of return, and it
provides a more meaningful risk measure when the expected returns on two alternatives are not the same
(Brigham & Houston, 2019). The coefficient of variation can be used to compare the rentals of the hourly
customers vs the rentals of daily customers. It will show how much of a risk we actually take by renting the
same car to multiple people daily.
Reference
•
Brigham, E. F. , & Houston, J. F. (2019). Fundamentals of financial management (15th
ed.). Boston, MA: Cengage Learning.
Wesley Garrett
RE: Discussion – Week 4
The organization that I am familiar with that I am going to use for this discussion is Enterprise Rent-A-Car. As
a manager one service that I propose that supports organizational strategy is giving customers the option to
rent cars for as little as an hour at a time on a ride share program. Right now the lowest amount of time you
can rent for is one day no matter if you return it before the 24 hour hours is completed. With this pandemic
going on, we have lost considerable business at our airport location because not many are traveling. I believe
this service supports the organizational strategy of getting more cars on the road to increase profits with
minimal risk because all drivers will be vetted though our staff as currently constructed.
Two risk management tools that I would deploy to measure the overall risk in the organization are the
sharpe ratio and the coefficient of variation. Analysts who use the sharpe ratio uses both historical returns
data and standard deviation to determine calculations on expected returns (Brigham & Houston, 2019). The
sharpe ratio is used to look at historical data before the change as well as how the sales for the hourly rentals
deviate from the standard. This outlook helps my company to determine if continuing to offer hourly rentals
is profitable after a few weeks of service. The second management tool I am going to use to measure risk to
businesses is the coefficient of variation. “The coefficient of variation shows the risk per unit of return, and it
provides a more meaningful risk measure when the expected returns on two alternatives are not the same
(Brigham & Houston, 2019). The coefficient of variation can be used to compare the rentals of the hourly
customers vs the rentals of daily customers. It will show how much of a risk we actually take by renting the
same car to multiple people daily.
Reference
•
Brigham, E. F. , & Houston, J. F. (2019). Fundamentals of financial management (15th
ed.). Boston, MA: Cengage Learning.
Jaliza Cabral
RE: Discussion – Week 4
I once worked in an anesthesia medical billing office, and I still regularly
communicate with some of my co-workers. It is a small business, and the business
was heavenly impacted by the pandemic. At first, the business owner had to reduce all
employee hours from 40 to 24. Then, he received one of the small business loans that
allowed him to bring the employees back to full time for two to three more months.
The billing office does most of its billing from elective procedures. Now that elective
procedures have started again, the business will start to see more cash flow.
In my experience with the billing company, the office operations were outdated such
as the systems and processes. I think the business should invest in more advanced
systems to run operations more smoothly and efficiently. The risk-return tradeoff
chart would be used to show investors that the risk is sufficient to compensate for the
perceived risk (Brigham & Houston, 2019). The advanced systems would allow the
company to complete the billing queue more quickly and assist with more efficient
tracking and reporting. These improvements would allow the company to take on
more clients. Brigham & Houston (2019) explain “No investment should be
undertaken unless the expected rate of return is high enough to compensate for the
perceived risk.” The risk on the investment is reduced since the improved IT systems
would increase billing and clients.
New IT systems would require training and changes in daily operations. The balanced
scorecard is a great tool for this company. The balanced scorecard will help the
company identify, improve, and control business operations and outcomes (Tarver,
2020).
Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial
management (15th ed.). Boston, MA: Cengage Learning.
Tarver, E. (2020). Balanced scorecard. Retrieved from
https://www.investopedia.com/terms/b/balancedscorecard.asp

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