ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Establish credit limits by negotiating with various parties local and foreign institutions
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Ability to predict rates and prices of financial instruments and running a ‘matched book’ to avoid gaps
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Continuously train and update development in the financial system
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None of the above
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Detailed explanation-1: -Essentially, risk management occurs when an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment, such as a moral hazard, and then takes the appropriate action (or inaction) given the fund’s investment objectives and risk tolerance. Risk is inseparable from return.
Detailed explanation-2: -Risk management helps you to identify and address the risks facing your business and in doing so increase the likelihood of successfully achieving your businesses objectives. A risk management process involves: methodically identifying the risks surrounding your business activities.
Detailed explanation-3: -Step 1: Risk Identification. Risks must be identified so these can be controlled. Step 2: Risk Assessment. Step 3: Risk Mitigation. Step 4: Control Implementation. Step 5: Monitoring. 12-Oct-2018
Detailed explanation-4: -Prioritize. Buy Insurance. Limit Liability. Implement a Quality Assurance Program. Limit High-Risk Customers. Control Growth. Appoint a Risk Management Team.