ABC company’s Risk Profile Essay

ABC Company Risk ProfileThe ABC company is a manufacturing firm that specializes in devising cedar roofing and siding shingles, with recent sales at $1.2 million, the company wants to reach the $3 million mark over the next 3 years. As a newly hired Corporate Controller for this company, I have been assigned the task of developing and overlooking a new plan do by the CEO that testament use some of the shingle scrap materials to build cedar houses. The newly develop plan will certainly select new challenges for the company on the form of offshootd cost and labor However it will also provide additional revenue and gross put on to help reach the growth targets. On this paper I would go over the details of the report made for the CEO that includes information on the boilersuit risk profile based on actual market conditions, a current company cash flow, the product cost and any potential investments that baron accelerate profits.See moreThe Story of an Hour Literary Analysis Essay The Risk profile for this company includes several different factors that are for the most part due to current market conditions, and the level of risk the company will face by adding extra inventory and expenses. Unfortunately risk is a reality of doing business, whether the company is large or small, public or private, risk will always be present since nothing on the business world warrants a guarantee. Some of the key risk points are Inventory represents a big portion of the cash flow, therefore having extra inventory on hand will have an impact on the companys future cash flow payroll is also directly related to the cash flow since it takes a big portion of the monthly budget, therefore increasing the manufacturing capabilities of the factory as well as adding a new line of production will increase the payroll thus having an impact on cash flow reports Economic downturn, that might affect prices of inventory to be purchased, therefore affecting the potential growth as well as having an impact on reachingforecasted company goals.