Managerial Accounting You Must Identify Term Paper

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(Schroeder, 2011) ("What you can and must do to stay Secure," 2011)

How the Costs of Various Risks are evaluated prior to and after Decisions have been made

The way that costs are evaluated is based upon the total expenses to the company and the impact that it will have on their profit margins. This is achieved by conducting a cost basis analysis and then determining if this procedure will help to directly address the various risks facing the business. Once this occurs, is when everyone can see how a particular action will help the firm to realize its operation goals. (Schroeder, 2011) ("What you can and must do to stay Secure," 2011)

After this is when, the management will have a series of different reviews conducted that will determine the overall nature of the threat. At which point, there will be specific recommendation and adjustments made to the company's strategy.

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Over the course of time, this will help to limit the kinds of information that could be compromised during these types of events. (Schroeder, 2011) ("What you can and must do to stay Secure," 2011)

Discuss the strengths and weaknesses of the cost / accounting procedures applied to risk taking

The strengths of these procedures are that Master Card is able to adapt to a host of different threats they are facing. This has allowed the company to protect critical information about its clients. However, the weaknesses are that this strategy is not full proof and hackers who are determined can be able to cause problems for the company. This is when their image could be damaged despite the fact that they are able to secure personal information surrounding millions of transactions a day without any kind of major incidents. ("What you can and must do to.....

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