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| 1. ''Capital asset pricing model.''
| | A framework for establishing the prices that can be charged to customers for goods and services. This framework is subject to oversight and/or approval by a rate-regulator. |
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| In the Capital asset pricing model, financial risk means the component of total risk resulting from a firm’s capital structure.
| | For example, many governments regulate the supply and pricing of particular types of activity by private entities, including utilities such as gas, electricity and water. |
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| The more net debt there is in the capital structure, the greater the financial risk.
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| | | ==See also== |
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| | * [[IFRS 14]] |
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| The term 'financial risk' is also used more generally to mean the wider risk of uncertain financial outcomes.
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| For example, the risks arising from not knowing the future home currency value of a forecast foreign currency receipt, or the uncertainty regarding the size of future interest payments on floating rate borrowings.
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| 'Financial risk' can also refer to the financial implications arising from all types of risk.
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| Especially adverse financial implications.
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| == See also == | |
| * [[Asset beta]] | |
| * [[Business risk]]
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| * [[Capital asset pricing model]]
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| * [[Equity risk]]
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| * [[Financial asset]]
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| * [[Financial liability]]
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| * [[Financial market price risk]]
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| * [[Financial risk management]]
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| * [[Guide to risk management]]
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| * [[Operational risk]]
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| * [[Return]]
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| * [[Risk]]
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| * [[Risk taxonomy]]
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| * [[Ungeared beta]]
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| ===Other links===
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| [http://www.treasurers.org/node/8443 Masterclass: Measuring financial risk, ''Will Spinney'', The Treasurer]
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| [[Category:Manage_risks]]
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Revision as of 14:08, 17 January 2015
A framework for establishing the prices that can be charged to customers for goods and services. This framework is subject to oversight and/or approval by a rate-regulator.
For example, many governments regulate the supply and pricing of particular types of activity by private entities, including utilities such as gas, electricity and water.
See also
