Overview: In this short paper, you will address the risks confronting the firm you have chosen for...

Question

Overview: In this short paper, you will address the risks confronting the firm you have chosen for the final project. The paper will inform your work on Milestone Three (due in Module Seven) and the final project (due in Module Nine).
Prompt: Referring to the prompt in the Final Project Guidelines and Rubric document (in the Assignment Guidelines and Rubrics section of the course), assess the potential for the macroeconomic events described in the scenario to pose financial risks to the firm you have chosen for the final project (JPMorgan Chase & Co.).
Specifically, address the following critical elements:
 Accurately identify the risks. For example, how might your firm be negatively impacted by fluctuations in the money supply? Provide specific examples to illustrate each identified risk. 
Use appropriate financial tools to measure (i.e., quantify) the risks. For example, consider calculating your firm’s debt-to-capital ratio, debt/equity ratio, interest coverage ratio, and degree of combined leverage.

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Aarti J · Accepted Answer

JPMorgan – Risk analysis
Identification of the risks and its effects in the money supply
The company has different risks which the company faces these includes the regulatory risk factors, political risk factors, economic risk factors, credit risk factors, liquidity risk factors, operational and strategic risk factors. 
Risk factors:
The company operates is a highly regulated environment as it is a financial company, the company is highly regulated with the laws which impacts its operations. The company needs to comply with the laws and regulations to operate in the country. To comply with the laws, the company has to incur high costs and is also effecting its revenues and profitability because of high regulatory services. 
The company also face certain political risk which can cause uncertainty to the regulations and the laws which the company follows. This political and economic concern affects the company and also its money supply.

Overview: In this short paper, you will address the risks confronting the firm you have chosen for the final project. The paper will inform your work on Milestone Three (due in Module Seven) and the...

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