Non-transferable risk and Parent company: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
Non-transferable risks are risks which must be borne by an organisation.
A parent company (investing company) controls a subsidiary.
 
 
Non-transferable risks might be avoided or accepted and retained or reduced as appropriate.
 
In the case of non-transferable business risks (which by definition are not avoided) it is important that the organisation has a distinctive competence in the relevant areas.
 
For example, a pharmaceutical company's non-transferable risks would include the risk that failure to gain approval for use of a new drug means that the research and development costs have been wasted.
 




== See also ==
== See also ==
* [[Committed risk]]
* [[Group]]
* [[Risk management]]
* [[Group accounts]]
* [[Transferable risk]]
* [[Letter of comfort]]
* [[Uncommitted risk]]
* [[Parent currency]]
* [[Simple investment accounting]]
* [[Sister company]]
* [[Subsidiary]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 21:47, 3 December 2022

A parent company (investing company) controls a subsidiary.


See also