Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen

Finance 1.Financial Planning 2.Financial Analysis 3.Principles of Investments 4.Cash Management& Control 5.Financial Forecasting a.Cost projections  Start-up costs  Monthly expenses  Working Capital  Variable cost  Sales projection b. Breakeven point c. Pro Forma financial statements  Income Statement  Balance Sheet  Cash Flows d. Ratio Analysis  ROI  ROE  Net Working Capital  Other Ratios e. Capital Requirements 6. Financial Risk Management

Financial Risk Management Risk is an integral part of entrepreneurship, because entrepreneurs all over the globe are dealing with uncertainty and risk. Unforeseen circumstances and their negative consequences are the very essence of risk Risk exists in any situation where there is a possibility of an outcome that we would rather avoid. Preparing a financial risk plan for your business is one of the requirements for both SMEs and Khalifa Fund. Finally, you need a disciplined approach to identify and mitigate risks for the new start-up business Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen

Financial Risk Management SMEs 11. Expected Risks What risks can you anticipate, and how might they hinder or constrain business success? What necessary actions must be planned and taken to face these risks? Khalifa Fund 7. Business Risk & Sensitivity 7.2Risk Registry (Please identify your potential risks and how you will get over them?) Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen

Financial Risk Management Risk Management is the art and science of listing what could go wrong in the business, and what should be done to mitigate those risks. Every business has its unique risks that must be identified and managed in advance, of course, it depends on the probability of occurrence of each one. Risk management framework is a systematic steps to follow in managing risks by identifying, classifying and controlling possible risks. Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen

Financial Risk Management Framework All risks have two dimensions to them: 1.likelihood of occurrence 2.severity of the potential consequences Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen

Financial Risk Management Framework All risks have two dimensions to them: 1.likelihood of occurrence 2.severity of the potential consequences Steps of managing Risks: 1- Identification: Find, recognize and describe risk 2- Analysis: Comprehend the nature of risk and determine the level of a risk 3- Evaluation: Compare the risk results with risk criteria to determine whether the risk is low, medium or high. 4- Response: Modify the risk by mitigating, avoiding, transferring or accepting the risk 5- Monitoring: continually check the status of a risk to identify change from the performance level required or expected Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen

Financial Risk Management Risks with relatively minor consequences and a relatively low likelihood of occurring (green area (Low), may be ignored if the cost of mitigating is high. Risks that could have major consequences but are relatively unlikely to happen are often insurable (medium boxes). Property insurance, fire, liability….etc. Risks with both a relatively high likelihood of occurrence and major consequences (red color). Those are very important to identify and mitigate to survive Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen

Application: List all risks that your business will most likely will face and identify the consequences of each one and then prepare a table of how are you going to deal with the medium and high risks Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen