In this coursework you will write a risk report in groups on a company specified by the module leader.
As a group you are required to write a risk report on a specific company for an investor who has £100,000 to
invest. You are working for the investor so the report should be neutrally worded. This is not a sales report
where your aim is to persuade the investor to take a position. Instead it is an honest evaluation of risk to
enable the investor to make the correct decision for them self. You are not required to provide a
recommendation. The aim of the investor is to make a positive return from their capital, therefore, you
should attempt to identify risks which will affect the company and might lead to a reduction in share price.
You should also, where appropriate, use numerical techniques to quantify the risks of the investment. You
are free to arrange the report in any way you like, however, the first page must contain a title and an
executive Summary (no more than 300 words) describing your key findings.
The report should include a quantitative analysis of worst case scenarios for the investor. In particular if the
investment goes badly, how much they are likely to lose. In doing this you should present your calculations
and justify your approach.
There are a range of risks which may affect the company and you should attempt to identify and describe the
specific risks. Depending on the firm these may include: operational risk*, credit risk, risks to the sector*,
market risk, liquidity risk and others. You may also wish to consider if any of these risks may easily be
reduced by the investor.
* note no numerical analysis is necessary for these risks due to difficulty of obtaining data
Advice and Guidance:
The report should be no longer than 12 pages (A4, size 12 font, 1.5 line spacing, 1 inch borders) including
figures, calculations, references and title/summary page. Appendixes may be used where necessary to
include data and are not included in the page count. It is sufficient for one member to submit the report.
The marks awarded for the coursework are as follows:
10% Executive Summary (No more than 300 words)
5% Introduction and general information about company (Remember this is a risk report for an investor and
so must be introduced appropriately)
10% Identification of appropriate risks (What the key risks for this company are – this must be related to the
company and not just be a generic list of risks)
40% Quantitative Analysis (Correct application of techniques)
10% Justification of choices (Which models and data were used in the quantitative analysis)
15% Non-quantitative analysis of risks (those risks which aren’t considered in the quantitative calculations)
10% Presentation of the document (layout, style etc – not an oral presentation)
