Beruflich Dokumente
Kultur Dokumente
WHAT IS RISK ?
Risk is defined as volatility of actual returns from an investment
investment.
Different versions of risk are usually measured by calculating the
Financial Risks
Financial risks is a common term for every risk associated with
faced by it .
Liquidity risk and wrong capital structure are the prime reasons
financial risk.
A company which is unlevered has no financial risk.
financial nature , including sales and purchases investment and loans and other business activities.
It can arise as a result of legal transactions, new projects, mergers
and acquisition, debt financing or through activities of management , stakeholders, competitors, foreign governments or weather.
Financial fluctuations may make it more difficult to plan and
changes in market places, such as interest rates, exchange rates and commodity prices.
Financial risks arising from the dealings of, and
transactions with each other organizations such as vendors, customers and counterparties in derivative transactions.
Financial risks resulting from internal actions or failures of
EXCHANGE RISK
MARKETABILITY RISK
PERSONNEL RISK
ENVIORNMENTAL RISK
PRODUCTION RISK
of the interest income/expenditure or values of assets/ liabilities to the interest rate fluctuations.
EXCHANGE RISK :
The volatility in the exchange rates will have a direct bearing on
the values of the assets and liabilities which are denominated in foreign currencies
MARKETABILITY RISK:
This is the risk of the assets of a firm not being readily
marketable.
Marketing risk can also take place because of selling at lower
than expected prices due to existence of competition, change in fashion or taste of consumers leading to obsolescence of products, political instability resulting in loss of exports, etc
PERSONNEL RISK:
By and large every company needs personnel to operate. The risk is such as resignation/ death/ sickness of the employee.
ENVIORNMENTAL RISK :
With the awareness created in public minds about the damages
caused to the environment by industrial concerns the company runs the risk of heavy fines ,closure ,government orders to shift the premises .
PRODUCTION RISK:
The production may be disrupted due to floods,etc. The firm may not be able to produce the budgeted quantity at the
budgeted price.
The plant and machinery may not work efficiently affecting
production.
Raw materials may not be available in short-supply. These are few risks due to production irregularities.
INTERNAL RISK
EXTERNAL RISK
the management to visualize the future will all contribute to the internal business risk.
To great extent it is a controllable factor.
The risk losses that may arise due to personnel can also be
classified here.
company.
Group members
Bhumika verma : 7923
Bijal patel
: 7924 Neha sangwan : 7925 Anoli adhia : 7926 Anusha shetty : 7927
Thank You