Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Certain risks are major and non – acceptable too. The mgmt.
Must find ways to reduce, avoid or transfer the risk.
Exchange Risk
Volatility in the exchange rates will have a direct impact
on the values of assets and liabilities, which are denominated
in foreign currencies.
Default Risk
Default risk is the risk of non – recovery of sums due
from outsiders. This risk has to be considered when credit is
extended to any party.
Types of risk
Liquidity risk
Other risks
Legal risks
Economic environment risk
Political risks
Managing the Risk
1)Avoidance
Avoidance refers to not holding such an
asset/liability which is exposed to risk.
2)Loss control
Forwards Futures