Aggressive: Difference between revisions
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1. ''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 are appropriately rewarded. | ||
Examples include: | Examples include: | ||
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==Other resource== | ==Other resource== | ||
*[ | *[https://www.theirm.org/media/7239/64355_riskapp_a4_web.pdf Risk appetite and risk tolerance: Practical guidance - Institute of Risk Management] | ||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Identify_and_assess_risks]] | [[Category:Identify_and_assess_risks]] |
Latest revision as of 21:58, 17 April 2024
1. Risk appetite.
More aggressive financial and operational strategies are those in which higher levels of risk may be acceptable, if they are appropriately rewarded.
Examples include:
- Banks being willing to lend to borrowers other than very strongest credits, for an acceptable additional yield.
- Non-financial corporates 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