"Risk identification is an underdeveloped art" Discuss and include an overview of risk identification aids and techniques in yo

"Risk identification is an underdeveloped art"  Discuss and include an overview of risk identification aids and techniques in yo Essay example
Finance & Accounting
Pages 5 (1255 words)
Download 1
Risk Management Introduction Risk management in the corporate world means to identify potential risks analyze them, monitor them and take measures that may reduce or mitigate the risk that a certain project, process or regular course of business might face…


Risk management is the concept that allows the management to look after future uncertainties like that of high inflation, volatility of market, recession, change in market demand, competitors, change in regulations, etc. Therefore it becomes a responsibility of the management to analyze and identify such risks. Otherwise, they may lead to financial turmoil and create issues like liquidity or even bankruptcy (Georges, 2013). Under the financial markets where uncertainties are high and investors expect to receive good returns, a diversified portfolio is maintained by the financial institutions. This is done in order to minimize the exposure to the risk by making investments in both equity funds and fixed deposits. It can also be said that risk management is the mitigation of the uncertainties, hence, allowing better decision making and prediction regarding the future outcome (Alexander, 2001). Risk Identification Risk management is part of the regular management processes and responsibilities in the organization. It is an ongoing process that continues throughout the life of the project. It is often seen that entities face issues in locating and identifying the risks that may hamper their project or investment. Risk management is the two-step process. ...
Download paper
Not exactly what you need?

Related papers

Credit Risk
The following part of this paper will make one aware of the concept of credit risk in detail. Credit risk-background The last few decades witnessed the collapse of some major banks as a result of borrowers’ credit repayment failure. Hence, many of the world’s largest banks and other financial institutions have developed comprehensive systems in order to deal with credit risk arising from…
4 pages (1004 words)
risk management
This created a bubble in the housing finance sector and mortgage properties. Investment banks and other financial institutions started to lend money to the mass of people as well as corporate houses for purchase of land or other business purposes. The land and housing properties were kept as mortgage serving as underlying securities for those loans. These loans were granted to the borrowers…
12 pages (3012 words)
risk management
This report will focus on the different types of yield curves and how changes in the slope of yield curve impacts the future prospects of the economy. Further, it will also take into consideration the effectiveness of monetary policy responses in the time of financial crisis and how those responses have affected the shape of the yield curve. Table of Contents Executive Summary 2 Table of Contents…
8 pages (2008 words)
Identifying and Managing Risk
The market risk is associated with the uncertainties in the areas of foreign exchange rate fluctuations, fluctuation of interest rates, fluctuation of stock prices and commodity prices. The market risk is managed by the use of interest rate swaps, options and future. The use of derivatives in financial market is important to hedge market risks. The risk management techniques are used to reduce the…
risk management
The systemic risk governance requires unity between the countries and enclosure within the process of industry, government, academia and the civil society. Governance is defined as the processes, traditions, actions and institutions by which the authority exercises and takes decision which is then implemented (Aven & Vinnem, 2007). Risk Governance The term risk governance can be defined as the…
14 pages (3514 words)
risk management
Various related sub-topics are discussed, such as ‘Admitted’ and ‘Non-Admitted’ besides analysing each mentioned domicile destination so that the most preferable domicile is finalised. Starting with Australia, other domiciles are discussed in detail. Guernsey takes the lead as it has maximum favourable points keeping in view the long-term strategic risk-management planning for an…
12 pages (3012 words)
Risk management
Demand for transparency has increased and expectations are rising for companies to evaluate report and improve their environmental, social, and economic performance. Corporate Social Responsibility (CSR) does not have intricate definition. According to McWilliams and Siegel (2001) “actions that appear to further some social good, beyond the interest of the firm and that which is required by…