Uncommitted risk - Revision history

imported>Doug Williamson: Restructured layout and rationalised use of firm/organisation

2015-05-30T09:29:14Z

Restructured layout and rationalised use of firm/organisation

← Older revision		Revision as of 09:29, 30 May 2015
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	A risk to which an organisation is not contractually committed.		A risk to which an organisation is not contractually committed.

			Uncommitted risks can be defined as those potential transactions which can be anticipated as part of the organisation's business. The organisation might not be contractually committed to such transactions but it is very likely that they will occur.

	Uncommitted risks can be defined as those potential transactions which can be anticipated as part of the firm's business. The firm might not be contractually committed to such transactions but it is very likely that they will occur.

	Such risks may include the next renegotiation with regard to raw material purchases (e.g. aircraft fuel), even if some way in the future, the next product launch, such as new car model in 5 to 7 years’ time.		'''Example'''

	~~It also includes anticipated future currency inflows from sales, or currency outflows for~~ raw material purchases ~~and anticipated financial flows such as interest payments~~, ~~dividends and tax payments. One off transactions such as an acquisition could also be considered and~~ future ~~capital expenditure should be included~~, as ~~all firms need~~ to ~~invest for the future~~.		Such risks could include:
			* the next renegotiation with regard to raw material purchases (e.g. aircraft fuel), even if some way in the future;
			* the next product launch, such as new car model in 5 to 7 years’ time.

	The identification of such uncommitted risks requires a detailed analysis of the business and an understanding of its future growth and development plans. These risks can be viewed as strategic or economic in that they affect ~~the~~ future profitability and perhaps viability ~~of a firm~~.		Uncommitted risk also includes anticipated future currency inflows from sales, or currency outflows for raw material purchases and anticipated financial flows such as interest payments, dividends and tax payments.

			One off transactions such as an acquisition could also be considered and future capital expenditure should be included, as all organisations need to invest for the future.


			The identification of such uncommitted risks requires a detailed analysis of the business and an understanding of its future growth and development plans. These risks can be viewed as strategic or economic in that they affect future profitability and perhaps viability.

imported>Doug Williamson: Link with Non-transferable risk and Transferable risk pages

2015-05-20T12:06:23Z

Link with Non-transferable risk and Transferable risk pages

← Older revision		Revision as of 12:06, 20 May 2015
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	* [[Committed risk]]		* [[Committed risk]]
			* [[Non-transferable risk]]
			* [[Transferable risk]]

	[[Category:Financial_risk_management]]		[[Category:Financial_risk_management]]

imported>Doug Williamson: Expand the stub. Source: MCT 4.1.3 page 12, March 2012.

2015-05-19T08:27:29Z

Expand the stub. Source: MCT 4.1.3 page 12, March 2012.

← Older revision		Revision as of 08:27, 19 May 2015
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	A risk to which an organisation is not contractually committed.		A risk to which an organisation is not contractually committed.


			Uncommitted risks can be defined as those potential transactions which can be anticipated as part of the firm's business. The firm might not be contractually committed to such transactions but it is very likely that they will occur.

			Such risks may include the next renegotiation with regard to raw material purchases (e.g. aircraft fuel), even if some way in the future, the next product launch, such as new car model in 5 to 7 years’ time.

			It also includes anticipated future currency inflows from sales, or currency outflows for raw material purchases and anticipated financial flows such as interest payments, dividends and tax payments. One off transactions such as an acquisition could also be considered and future capital expenditure should be included, as all firms need to invest for the future.

			The identification of such uncommitted risks requires a detailed analysis of the business and an understanding of its future growth and development plans. These risks can be viewed as strategic or economic in that they affect the future profitability and perhaps viability of a firm.

imported>Doug Williamson: Category added

2015-03-21T11:02:19Z

Category added

← Older revision		Revision as of 11:02, 21 March 2015
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	* [[Committed risk]]		* [[Committed risk]]

			[[Category:Financial_risk_management]]

imported>Doug Williamson: Create the page. Source: ACT syllabus.

2015-02-09T17:46:28Z

Create the page. Source: ACT syllabus.

New page

A risk to which an organisation is not contractually committed.

== See also ==

* [[Committed risk]]