Answer to Question #314636 in Management for Zeinab Zoayter

Question

Question 1:

Critically assess the general business environment and its impact on Air Canada, current corporate strategy, and possible future challenges faced by Air Canada. (20 Marks, 500Words) 

 

Question 2:

Identify the most relevant sources of financial risk, and examine how these are being managed today. Include a description of the risk, a sensitivity analysis based on your forecast for the risks identified, and any other relevant information. (30 Marks, 600 Words)

 

Question 3:

Discuss how are Air Canada’s largest competitors managing the financial risk. Based on your forecast, discuss whethertheir risk management practices create a competitive advantage or disadvantage. (20 Marks, 500 Words)

 

Question 4:

What recommendations would you make to the board of directors, based on your analysis? (30 Marks, 600 Words)

Answer 1

We strive to incorporate environmental factors into our business choices and reduce our environmental footprint at Air Canada. Our strategy is twofold: we want to leave less carbon in the environment, garbage in our land and water, and noise in our neighborhoods as a result of our operations.

There are various types of financial risk in our lives: illness or accident, legal liability, death, and property loss.

The risk management method has six easy steps: identify your hazards, assess them, control them, monitor them, enhance your risk management, and report your success.