How might you mitigate the risks that are mentioned? Market, Liquidity, and Operational.

Q: Explain the types of risk?

A: Introduction: There is a risk involved in any company decision, and in personal life decisions. In…

Q: Describe a situation in risk management that involves ethical aswell as financial issues.

A: Ethical issue: the risk that arrives due to not following the code of conduct as prescribed by the…

Q: What is meant by risk? Why must it be managed properly?

A: Risk can be defined as the probability of an event occurring and having consequences. Standard…

Q: Risk management focuses on what?

A: Organizations assess the stakeholder’s responses as risks or opportunities which would affect the…

Q: Discuss how diversification reduces firm specific risk.

A: Diversification is investing money in many investments rather than a single investment. In…

Q: Should managers estimate intrinsic values or leave that to outside security analysts?Explain.

A: Intrinsic value of a stock is perceived value of a stock using analysis of book values of the…

Q: Briefly explain the fundamental trade-off between risk and return.

A: Fundamental trade-off among risk and return: Higher risk is related with larger chance of advanced…

Q: What are some actions that companies can take tominimize or reduce risk exposures?

A: The following are the actions utilized by companies to reduce exposure of risk: A company can…

Q: What types of information must be considered when it comes to risk and return?

A: Risk and return go hand in hand both are related to each other.There is direct correlation between…

Q: What are the real risks of an adverse financial outcome, especially in the short run?

A: Risk is the important factor of investment decisions to explain the capability of an investor to…

Q: definition of political risk and how mitigate it?

A: Political risk are risk arising due to political parties of countries with change in government…

Q: What is meant by the nature of the company, and why is it important to inherent risk assessment?

A:

Q: Define the term Trade-Off between Risk and Reward?

A: Risk-Reward trade off refers to an investment principle which indicates higher the risk, higher is…

Q: What is risk and give examples

A: While making investment decisions risk and return should be taken into consideration.

Q: (a.) What is the underlying principle of valuation?(b). Why is it critical for us to learn the…

A:

Q: what is return. Define risk and explain how it is assessed

A: Definition

Q: Is funding a type of risk?

A: Funding means providing the funds to the party and charging interest rates from them. Firms need…

Q: Explain the Trade-Off between Risk and Reward?

A: The trade-off means to lose one thing to achieve another thing. For example An organization is…

Q: What is the importance of liquidity?

A: Introduction: Liquidity is nothing but the ability of the bank to turn money into cash and to be…

Q: Define and explain the agency problem in terms of differences in ability to diversify risk by…

A: Agency problem occurs when there is a conflict of interest when manager is in dilemma to serve the…

Q: What is liquidity (security)?

A: Introduction: Liquidity is associated to rapid access to cash. Persons hold assets or security, and…

Q: Explain the risk-return trade-off for liquid assets.

A: Risk return trade off tell relationship between the risk and return.

Q: Explain about the Hedging against fair value risk.

A: Financial instrument:   It is a monetary contract between two parties which acts as an evidence of…

Q: What is commercial risk?

A: In financial terms, risk is defined as the possibility that the real profits from an outcome or…

Q: do you understand by the term "Liquidity Management". Why is important ?

A: in organisation company have large amount money held in different forms assets but it takes time to…

Q: Implications of the business risk approach?

A: Business risk is the exposure a company or organization has to factor(s) that will lower its profits…

Q: What does mangment want to achieve when it tries to "ensure liquidity" and  "maintain solvency "?

A: Companies do maintain sufficient liquidity to maintain the day-to-day operations of the entity. It…

Q: What is risk? Why must risk as well as return be considered by the financial manager who is…

A: Risk is associated with every business it is one of the important functions of the management to…

Q: Answer the following questions: a) How do you handle financial risk?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain risk aversion

A: Introduction: Risk can be characterized in terms of the uncertainty of future consequences resulting…

Q: Define business risk

A: A business risk is an inherent risk arising due to the economic activities performed by the…

Q: Describe some regulatory actions that have influenced theevolution of risk management.

A: Regulatory Actions are the actions that are substantive, i.e. required to meet the expectations.…

Q: Explain the concept of risk management

A: Introduction: Risk can be characterized in terms of the uncertainty of future consequences resulting…

Q: What are some determinants of business risk?

A: Business risk is referred as the exposure of risk factors towards a company or a business which…

Q: Provide one example of a calculation of risk and discuss its significance.

A: Risk is a chance that the actual gain or outcome from the investment will differ from the expected…