BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To maximise profit and shareholder value by providing different financial services mainly by managing risks.
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To understand the risk or return trade-off.
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To utilising financial products to hedge against risk (such as using options, futures, insurance).
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To have proper valuation methodologies to assess quality of investments and determine the allocations and expected returns.
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Detailed explanation-1: -The goal is to rid the firm of risks that are unessential to the financial service provided or to absorb only an optimal quantity of a particular risk.
Detailed explanation-2: -Key Takeaways Financial institutions help intermediate financial transactions between people saving and people spending money. Services that financial institutions may offer include deposit accounts, loans, investments, insurance policies, and foreign currency exchange.
Detailed explanation-3: -The objective of risk management is to control risks. When the potential risks are identified, measured, and monitored, then the final objective is to find out ways to deal with or control those risks. in evaluating whether the risk is worth spending time and money on.
Detailed explanation-4: -It protects your financial status. Similar to the last, your financial status will be safer if you have a plan in place to handle unexpected situations. Many circumstances can impact your finances and risk management will help you ride out those changes.