SSION QUESTION PWC ltd is a firm which has been in existence for the past 15 years engaging in the business of provding financial services. The financial manager of PWC Itd has identified potential project which could improve the financial position of the firm by bringing in a profit of $300m and a potential of 60% of the expected returns over the life span of the project. The financial manager has recommended this project to the board. After a full consideration of the project and its expected profit. They conclude that the firm could only afford a loss of $80m as Covid-19 has had some negative effect on their finances. As a risk analysis you have been asked to: 1. Discuss any five potential risks that this firm is exposed to? 2. Foreachoftheriskidentifiedabove,howwouldthefirmbeaffectedifthe worst outcome should occur? 3. What is the firms risk appetite and tolerance level? 4. WhatshouldXYZItdbedoingtomanagetheriskidentifiedaboveinterms of the 4T's?

notional profit $800m and marginal profit is $300m

PwC Itd is a firm which has been in existence for the past 15 years engaging in the business of providing financial services. The financial manager of XYZ It has identified potential project which could improve the financial position of the firm by bringing in a profit of 300m$ and a potential of 60% of the expected returns over the life span of the project. The financial manager has recommended this project to the board. After a full consideration of the project and its expected profit. They conclude that the firm could only afford a loss of $80m as Covid-19 has had some negative effect on their finances. As a risk analysis you have been asked to Discuss any five potential risks that this firm is exposed to? . For each of the risk identified above, how would the firm be affected if the worst outcome should occur? What is the firms risk appetite and tolerance level? What should XYZ Itd be doing to manage the risk identified above in terms of the 4t's? PwC Itd is a firm which has been in existence for the past 15 years engaging in the business of providing financial services. The financial manager of XYZ It has identified potential project which could improve the financial position of the firm by bringing in a profit of 300m$ and a potential of 60% of the expected returns over the life span of the project. The financial manager has recommended this project to the board. After a full consideration of the project and its expected profit. They conclude that the firm could only afford a loss of $80m as Covid-19 has had some negative effect on their finances. As a risk analysis you have been asked to Discuss any five potential risks that this firm is exposed to? . For each of the risk identified above, how would the firm be affected if the worst outcome should occur? What is the firms risk appetite and tolerance level? What should XYZ Itd be doing to manage the risk identified above in terms of the 4t's