Aggressive: Difference between revisions
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(Add definitions. Sources: linked pages.) |
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''Risk appetite''. | 1. ''Risk appetite''. | ||
More aggressive financial and operational strategies are those in which higher levels of risk may be acceptable, if they appropriately rewarded. | More aggressive financial and operational strategies are those in which higher levels of risk may be acceptable, if they appropriately rewarded. | ||
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*Using relatively more debt, in the corporate capital structure. | *Using relatively more debt, in the corporate capital structure. | ||
*Taking a more selective approach to hedging financial risks. | *Taking a more selective approach to hedging financial risks. | ||
2. ''Negotiation.'' | |||
Adopting a position that is more than usually favourable for the party taking the aggressive negotiating position, and unfavourable for the other party. | |||
Depending on the circumstances, this may lead to a lengthening of negotiations, or their breakdown. | |||
3. ''Financial reporting.'' | |||
Aggressive financial reporting generally results in higher reported asset values and near-term profits, compared with more conservative financial reporting. | |||
== See also == | == See also == | ||
* [[Conservative]] | * [[Conservative]] | ||
* [[Financial reporting]] | |||
* [[Hedging]] | * [[Hedging]] | ||
* [[Institute of Risk Management]] | |||
* [[Pricing guidance]] | |||
* [[Rewarded risk]] | * [[Rewarded risk]] | ||
* [[Risk appetite]] | * [[Risk appetite]] | ||
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==Other resource== | |||
[http://www.theirm.org/knowledge-and-resources/thought-leadership/risk-appetite-and-tolerance/ Risk appetite and risk tolerance: Practical guidance] | *[http://www.theirm.org/knowledge-and-resources/thought-leadership/risk-appetite-and-tolerance/ Risk appetite and risk tolerance: Practical guidance - Institute of Risk Management] | ||
[[Category:Identify_and_assess_risks]] | [[Category:Identify_and_assess_risks]] | ||
Revision as of 03:07, 30 March 2024
1. Risk appetite.
More aggressive financial and operational strategies are those in which higher levels of risk may be acceptable, if they appropriately rewarded.
Examples include:
- Being willing to lend to borrowers other than very strongest credits, for an acceptable additional yield.
- Using relatively more debt, in the corporate capital structure.
- Taking a more selective approach to hedging financial risks.
2. Negotiation.
Adopting a position that is more than usually favourable for the party taking the aggressive negotiating position, and unfavourable for the other party.
Depending on the circumstances, this may lead to a lengthening of negotiations, or their breakdown.
3. Financial reporting.
Aggressive financial reporting generally results in higher reported asset values and near-term profits, compared with more conservative financial reporting.
See also
- Conservative
- Financial reporting
- Hedging
- Institute of Risk Management
- Pricing guidance
- Rewarded risk
- Risk appetite
- Risk averse
- Risk management
- Guide to risk management
- Optimal capital structure
- Risk policy
- Risk register
- Risk tolerance
- Yield
