Aggressive: Difference between revisions
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* | *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. | *Taking a more selective approach to hedging financial risks. | ||
Revision as of 03:09, 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:
- 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