Conservative: Difference between revisions
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''Risk appetite''. | ''Risk appetite and risk budgeting''. | ||
Conservative financial and operational strategies are those in which only the lowest levels of risk are acceptable. | Conservative financial and operational strategies are those in which only the lowest levels of risk are acceptable. | ||
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* [[Aggressive]] | * [[Aggressive]] | ||
* [[Collateral]] | * [[Collateral]] | ||
* [[Guide to risk management]] | |||
* [[Enterprise risk management]] | |||
* [[Hedging]] | * [[Hedging]] | ||
* [[Prudence]] | * [[Prudence]] | ||
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* [[Risk appetite]] | * [[Risk appetite]] | ||
* [[Risk averse]] | * [[Risk averse]] | ||
* [[Risk budget]] | |||
* [[Risk management]] | * [[Risk management]] | ||
* [[Guide to risk management]] | * [[Guide to risk management]] | ||
Revision as of 11:48, 2 April 2019
Risk appetite and risk budgeting.
Conservative financial and operational strategies are those in which only the lowest levels of risk are acceptable.
Examples include:
- Lending only to the very strongest credits, with substantial collateral.
- Using very little debt, or no debt, in the corporate capital structure.
- Maintaining large reserves and large amounts of high quality liquid assets.
- Hedging a high proportion of, or all, material financial risks.
Also known as 'prudent'.
See also
- Aggressive
- Collateral
- Guide to risk management
- Enterprise risk management
- Hedging
- Prudence
- Reserves
- Rewarded risk
- Risk appetite
- Risk averse
- Risk budget
- Risk management
- Guide to risk management
- Optimal capital structure
- Risk policy
- Risk register
- Risk tolerance
Other links
Risk appetite and risk tolerance: Practical guidance, www.theirm.org
