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Risk and Business Planning for Beginners
Learn how to plan your business and evaluate riskPreview the first lesson free — get full access to all 6 lessons.
Beginner Provider : Mary Donner 6 Lessons · 17m in Arabic, German, English, Spanish, French, Portuguese, Chinese
Course Description
This course covers cash management and short-term versus long-term finance. You will learn how the operating cycle depends upon funding made available by receivables collection, inventory management, and the implementation of internal controls. You will also learn how accountants and financial managers use different types of forecasting to evaluate long-term financial prospects. This course also covers the types of financial risk and how to mitigate and evaluate risk.
Financial risk will be present in any combination of short-term and long-term financing. Assessing the risk level that your business can withstand is key to capital financing and planning for future growth. A finance manager needs to ensure that there is enough cash on hand during the operating cycle to fund the company’s day-to-day operations. For long-term finance, capital structures are created to fund projects that advance the company’s growth or to fund the company during a slow financial period. A thorough analysis and management of the operating cycle and capital structure will help a business efficiently use their funds and ensure they remain profitable. You will also learn about the fundamental financial risk concepts, like risk-free rate, risk premiums, and diversification. These concepts, alongside tools like Beta, will help you help evaluate risk for your company.
What You'll Learn
- Identify systematic and non-systematic risks affecting a business
- Evaluate financial risk levels and how to mitigate them
- Assess capital structure used to fund long-term projects and growth
- Calculate working capital across the operating cycle
- Evaluate cash management, receivables collection, and internal controls
- Apply financial risk concepts such as risk-free rate, risk premiums, diversification, and Beta
Key Takeaways
- The operating cycle depends on funding made available by receivables collection, inventory management, and internal controls.
- A finance manager must ensure enough cash is on hand during the operating cycle to fund day-to-day operations.
- Capital structures are created to fund growth projects or to support the company during slow financial periods.
- Financial risk is present in any combination of short-term and long-term financing, so assessing the risk a business can withstand is key to capital financing and planning for growth.
- Thorough analysis of the operating cycle and capital structure helps a business use funds efficiently and remain profitable.
Frequently Asked Questions
What does this course cover?
It covers cash management, short-term versus long-term finance, the operating cycle, forecasting for long-term financial prospects, types of financial risk, and how to mitigate and evaluate risk.
Who is this course for?
It is designed for beginners learning risk and business planning, including those in finance manager roles responsible for cash management and capital structure.
What skills will I gain?
You will gain skills in business risk management, financial management, financial risk management, risk management, and risk management planning.
What financial risk concepts are taught?
The course teaches fundamental concepts such as the risk-free rate, risk premiums, diversification, and tools like Beta, along with identifying systematic and non-systematic risks.
What topics are included in the lessons?
Lessons include Introduction, Cash Management and Internal Controls, Short-Term Finance, Long-Term Finance, Financial Risk, and a Test Your Knowledge assessment.
