Net Income Risk Management: How to Minimize Losses Affecting Revenues and Expenses
Net Income Risk Management examines the areas of net income exposures that are difficult to handle. Net income exposures are caused by the loss of use of property or loss of a key employee, and net income losses reduce revenues and/or increase expenses. For an organization, the likelihood of financial failure arising from a net income loss is far greater than that arising from a property or liability loss.
Net Income Risk Management concentrates on the net income loss exposures and valuations arising from property, liability, and human resources exposures. Examples and cases are cited that explain the critical net income exposures.
- Basics of Net Income Exposures
- Basic Risk Management Concepts
- Exposure Identification and Logical Classifications
- Basics of Accounting
- Basics of Finance
- Cash Discounting
- Income Tax Implications
- Direct Net Income Exposures
- Net Income Exposures Related to Property
- Net Income Exposures Related to Liability
- Net Income Exposures Related to Human Resources
- Treating the Net Income Exposures
- Net Income Exposures Arising from Intellectual Properties
- Case Studies Involving Net Income Loss Exposures
- Appendix: Financial Statements
- Provides the fundamental background principles in accounting and finance needed to identify and manage net income risks.
- Includes 15 case studies to help understand how risk management principles are applied in different-but-common contexts.
- Presents ways to minimize time element exposures and contingent net income losses.
Practical Uses and Benefits:
- Helps reduces net income losses for the business.
- Allows a business to increase its profit.
- Enables one to identify and value net income loss exposures.
- Helps to avoid errors and omissions claims losses.
Recommended reading for CIC and CRM courses. (188 pages)