BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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are the risks associated with financial appreciation
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are the risks associated with financial discounts
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the risk from making financial decisions that will not affect the profitability of the business
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All of the above sentences are wrong
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Detailed explanation-1: -Credit risk, liquidity risk, asset-backed risk, foreign investment risk, equity risk, and currency risk are all common forms of financial risk. Investors can use a number of financial risk ratios to assess a company’s prospects.
Detailed explanation-2: -Financial Risk: Financial Risk as the term suggests is the risk that involves financial loss to firms. Financial risk generally arises due to instability and losses in the financial market caused by movements in stock prices, currencies, interest rates and more.
Detailed explanation-3: -This is included in the category of financial risk. There are at least 4 risks included in it, namely income risk, expenditure risk, asset or investment risk, and credit risk.
Detailed explanation-4: -There are 5 main types of financial risk: market risk, credit risk, liquidity risk, legal risk, and operational risk. If you would like to see a framework to manage or identify your risk, learn about COSO, a 360º vision for managing risk.
Detailed explanation-5: -Risk discount refers to a situation in which an investor accepts lower expected returns in exchange for lower risk. A risk premium is the risk taken above the risk-free rate with the expectation of higher returns.