what happens if a company doesn't manage risk ?

Q: Explain with an example of how a healthy company might not have a spectacular ROE because there is…

A: Return in Equity or R.O.E. Return on equity refers to as the percentage of return, a company is…

Q: What are the risk factors in a risk management about the wiredcards Ag's Scandal?

A: The wiredcards  Ag's Scandal was biggest scandal in the fintech industry once was biggest innovator…

Q: What does it mean to “manage” risk? Should itsstockholders want a firm to “manage” all of therisks…

A: Company is not certain about few things which cannot be predicted exactly. In that case, there will…

Q: What is financial risk? How is it related to business risk?

A: The financial risk is the risk which is related to the non-payment of the fixed financial charges.…

Q: What are the options available to a company in the event of a financial failure?

A: Overspending and a more considerable degree of illiquid assets might lead to the firm's financial…

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A: A financial forecast gives businesses access to cohesive reports, allowing finance departments to…

Q: In theory, market risk should be the only “relevant” risk. However, companies focus asmuch on…

A: Stand-alone risk: Stand-alone risk is the risk related with the anticipated project cash flow. The…

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: Define corporate risk

A: Corporate risk is the risk related to the company’s normal course of activities. The corporate…

Q: What are the TWO primary advantages of using CAPM over DDM?  It adjusts for risks It does not…

A: As per Dividend Discount Model,P0= D1 / (ke-g)WhereD1 = Expected Dividendke = Expected Returng…

Q: Which is risk in the context of financial decision making and performance? Does performance…

A: Risk in the perspective of financial decision making and performance differs as the company faces…

Q: Why does business risk vary from industry to industry?

A: Business risk It is the probability of occurrence of an inadequate amount of loss because of…

Q: Which failures in risk management systems have had catastrophic consequences in financial markets?…

A: The risk management executives have acquired expanded consideration and interest as of late, both…

Q: How does operating leverage affect business risk?

A: If an organization has high fixed expenses or cost, and if an organization experiences issues…

Q: 6. Business risk is that type of risk in which: a) The company is unable to meet its financial…

A: Types of risk consist of financial risk, operational risk and business risk.

Q: How do companies manage risk? What are the factors that contribute to a high-risk project?

A: In business there must be ups and downs in their business surroundings.  In every business there…

Q: What is the difference between business risk and financial risk?

A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…

Q: how a firm might use a hedging to reduce risk in its business? please include examples

A: Hedging is an important tool in finance. A firm or a company often makes use of hedging to reduce…

Q: Explain how pure risk has an adverse effect on the economy

A: Pure risk is one of the major type of risk which is beyond the control and can affects the economy…

Q: What is business risk? What factors influence afirm’s business risk?

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

Q: TRUE OR FALSE Financial sector creates products for the management of risk, thus risk can be…

A: Risk management is the process of identifying, analyzing, and accepting or mitigating uncertainty in…

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 can you say about the market value of the company? is it positve or is negative?

A: In finance market value of a company is the worth of the company and the worth of the company is…

Q: What factors contribute to the risk of overusing financial leverage?

A: Financial leverage is the use of debt in the capital structure to acquire additional assets. Use of…

Q: what are the benefit to the financial institution and their consumers of measuring or mitigating…

A: A strategy for planning for and decreasing the impact of hazards on an organisation is risk…

Q: Why use a business risk approach?

A: Business risk is generally identified by the Auditor. By reviewing the financial statements Auditor…

Q: If corporate managers are risk averse, does this mean that they will not take risks?  If you were a…

A: Capital budgeting is a tool or technique to analyzed the projects that projects are profitable or…

Q: What is liquidity black holes?

A: Liquidity is when assets can be easily traded in the market with no compromise in the price of the…

Q: What does the term hedging mean? Why do companies elect to follow this strategy?

A:

Q: Examples of systematic risk include a new competitor in the marketplace with the potential to take…

A: Unsystematic Risk: Diversifiable Risk is another name for this type of risk, which is easier to…

Q: In theory, market risk should be the only “relevant” risk. However, companies focus as much on…

A: Market Risk is the risk that may create a loss on the financial assets or investments due to…

Q: Please select the risk that affect only a single company? market risks. specific risks. systematic…

A: Systematic risk is also known as non-diversifiable risk, and it exist for entire market. It arises…

Q: How to deal with financial risk

A: Financial risk is always present in business situations but one thing we can do it that we can…

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: What is hedging and how is it different from diversification? If a firm needs to manage its risk,…

A: A hedge is an investment that is made fully intent on diminishing the danger of unfriendly value…

Q: How does risk management affect a company’s ability to finance its projects?

A: Risk is associated with every business; there are some risks which are controllable by the…

Q: Write a brief description of the logic behind the development of the time value formula for…

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