Financial risk: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Changed style of Other link - can't find issue month) |
imported>Doug Williamson m (Add month to The Treasurer link.) |
||
| Line 23: | Line 23: | ||
==Other links== | ==Other links== | ||
[http://www.treasurers.org/node/8443 Masterclass: Measuring financial risk, Will Spinney, The Treasurer] | [http://www.treasurers.org/node/8443 Masterclass: Measuring financial risk, Will Spinney, The Treasurer, July/August 2012] | ||
[[Category: | [[Category:Manage_risks]] | ||
Revision as of 15:11, 18 April 2014
1.
Financial risk in the Capital asset pricing model means the component of total risk resulting from a firm’s capital structure.
The more net debt in the capital structure, the greater the financial risk.
2.
The term is also used more generally to mean the wider risk of uncertain financial outcomes.
For example the risks arising from not knowing the home currency value of a foreign currency receipt in the future, or the uncertainty regarding the size of future interest payments on floating rate borrowings.
See also
Other links
Masterclass: Measuring financial risk, Will Spinney, The Treasurer, July/August 2012
