Risk Management

INTRODUCTION Human beings have tried to perform risks faced in their day-to-day life. Keeping inflammable material away from fire, saving for possible future needs, creation of a legal exit are all examples of attempts at managing risk. peril is the guess of the effective outcome being different from the pass judgment outcome. It includes both the downside and the crest potential. Downside potential is the possibility of the positive results being adverse compared to the expected results. On the other hand, upside potential is the possibility of the actual results being better than the expected results. RISK Risk is the possibility of something bitter happening or the chance of encountering loss or harm. Risk set ups the basis for opportunity. The terms risk and exposure have problematical differences in their meaning. Risk refers to the probability of loss, while exposure is the possibility of loss, although they are ofttimes used interchangeably. Risk arises as a result of exposure. Exposure to financial markets affects most organizations, either straightway or indirectly. When an organization has financial market exposure, there is a possibility of loss but also an opportunity for deliver the goods or profit.

monetary market exposure may provide strategic or competitive benefits. Risk is the likelihood of losings resulting from events such as changes in market prices. Events with a offset probability of occurring, but that may result in a high loss, are particularly troublesome because they are often not anticipated. Put another way, risk is the probable variation of returns. Since it is not always possible or desirable to extinguish risk, understanding it is an important step in determining how to manage it. Identifying exposures and risks forms the basis for an appropriate financial risk management strategy. Financial risk arises through countless transactions of a financial nature, including sales and... If you want to get a full essay, put together it on our website: Orderessay

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