Answer to Question #165227 in Economics for Austin

Question

What could be the risks that the Deloitte company is facing as a result of these technologies.

Answer 1

Business assessment is inextricably linked with the assessment of risks, including specific ones. Among the latter are dependence on key employees, consumers, and suppliers, the effectiveness of government regulation, and others.

The methodology for assessing such risks was proposed in 2005 by Deloitte & Touche, an international network of companies providing consulting and audit services. Deloitte is one of the “big four” audit firms and is the largest professional network in terms of the number of employees (255,000 people).

Deloitte suggests using a scoring method to assess specific risks. Depending on the degree of risk (low, medium, or high), each risk factor is assigned an appropriate score - from 1 to 3. The total value allows you to determine the risk premium required to calculate the discount rate using the cumulative method.