Definition.
Financial risk management means using the economic value or financial instrument to meat the exposure of risk mainly market risk and credit risk. The financial risk management cannot meat all the possible risk to the firm it must evaluate, identify all risk and make some precaution to handle that risk. There must some policy or procedure to handling it. The top management must written the policy that how much the financial risk is taken and handle. They must risks taken and generate reports to evaluate risk and making timing decision.
Financial risk management means using the economic value or financial instrument to meat the exposure of risk mainly market risk and credit risk. The financial risk management cannot meat all the possible risk to the firm it must evaluate, identify all risk and make some precaution to handle that risk. There must some policy or procedure to handling it. The top management must written the policy that how much the financial risk is taken and handle. They must risks taken and generate reports to evaluate risk and making timing decision.
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