The concept of "financial risk" is narrower. It means the danger of losing financial resources. The main task of risk management is to reduce the likelihood of partial or complete loss of finances. This is a key condition for the successful development of large companies. This applies not only to financial market participants, but also to any enterprises with financial interests.
Companies that engage in dubious activities are considered by financial experts to be more susceptible to risks. These include legal violations as well as speculative manipulation.
The risk of bankruptcy is just one of many financial risks that have arisen with the development of money and business relations between participants in the market of the same name - investors, creditors, buyers, sellers, etc. Over time, the number of risks only increased, and therefore a special classifier was created.
Financial risk assessment
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There are several parameters honduras email list by which risks are classified. For example, the object of the operation, the nature of the consequences, the time period, the probability of negative events, inflation, the possibility of forecasting, etc. Taking into account these characteristics, financial risks are divided into the following groups:
Risks associated with the purchasing power of money (i.e. how many goods and services can be bought for a given amount of money). Include inflation, deflation, currency depreciation, and reduced liquidity.
Investment-related risks . Include the probability of losses associated with investing money in various projects, as well as possible losses when investing in financial instruments and innovative products. This group also includes a reduction in financial stability, which is the capital that ensures the solvency of the company. Direct financial losses and lost profits also fall under this type of risk.
Risks affecting the activities of enterprises engaged in the production and sale of goods and services.
Investments are high-risk transactions, since the investor accepts the possibility that the project will not yield the expected profit. This also includes the risk of interest rate changes and the possibility of loan defaults. In the course of business activities, companies and individual entrepreneurs have to work with risks related to the turnover of funds and the use of loans.
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Alexander Kuleshov
Alexander Kuleshov
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