Resilience and Risk: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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''Behavioural skills.''
1.  


Resilience is the best tool for when your environment changes, and this is a skill that can be learned.   
In the corporate finance context, risk refers to the degree to which future returns may vary.   
Six ways to practise resilience:


*Attitude – understand your motivational state and how to change it
Risk is often measured by the standard deviation of forecast returns. 
*Responses to stress – awareness enables control
*Commitment – what are your motivations?
*Control – understand what can and can’t be controlled in your environment
*Relationships – maintain clear and consistent communication
*Health – mental and physical


It is often estimated by the standard deviation of <u>historic</u> returns, though this process is inherently error-prone when used for <u>forecasting</u> or for risk management purposes.
Four ways to practise resilience during COVID-19:


*Maintain boundaries between home and work especially when working from home
*Be transparent
*Manage your positivity
*Look out for verbal and non-verbal clues in your work relationships


''Association of Corporate Treasurers, Mental wellbeing and top tips for thinking in a resilient way, May 2020''
2.


In the Capital Asset Pricing Model, relevant risk is measured by beta.




==See also==
3.
* [[ACT Competency Framework]]
* [[AMCT]]
* [[Business skills]]
* [[Commercial drive and organisation]]
* [[Emotional intelligence]]
* [[Equifinality]]
* [[Executive coaching]]
* [[FOMO]]
* [[Growth mindset]]
* [[Influencing skills]]
* [[Mind map]]
* [[Self management and accountability]]
* [[Self-regulation]]
* [[Silo]]
* [[SMART]]
* [[Technical skills]]
* [[Working effectively with others]]


[[Category:Commercial_drive_and_organisation]]
In a more general sense, risk refers to the unknown (or unknowable) nature of future outcomes involving, for example, market prices or market rates.
[[Category:Influencing]]
 
[[Category:Self_management_and_accountability]]
 
[[Category:Working_effectively_with_others]]
4.
[[Category:Planning_and_projects]]
 
The possibility of <u>adverse effects</u> resulting from:
 
- Changes in market prices or rates, or
 
- Changes in other general conditions in the market, or
 
- Other economic factors specific to the business or other organisation (such as the failure of a key supplier).
 
 
5.
 
The possibility of an event occurring that will have an impact on the achievement of objectives.
 
This includes both the upside opportunity and the downside hazard which could either move us towards or drive us away from achieving our objectives.
 
Risk in this context is measured both in terms of (1) its impact and (2) its likelihood.
 
 
'''Treasury's role in risk management'''
 
No organisation can eliminate all risk, so risk has to be managed effectively. This is best done through a risk-aware culture.
 
Generally, treasury is about managing risk rather than taking risks.
 
Many risks should be managed. Risk management is a key activity of the treasury function.
 
 
== See also ==
* [[Alienation of assets]]
* [[Beta]]
* [[Capital asset pricing model]]
* [[Capital risk]]
* [[Commercial credit risk]]
* [[Commodity risk]]
* [[Counterparty risk]]
* [[Delivery risk]]
* [[Downside risk]]
* [[Effective annual rate]]
* [[Financial market risk]]
* [[Financial market price risk]]
* [[Insurance]]
* [[Legal risk]]
* [[Market risk]]
* [[Market price risk]]
* [[Model risk]]
* [[Regulatory risk]]
* [[Return]]
* [[Risk averse]]
* [[Risk management]]
* [[Guide to risk management]]
* [[Standard deviation]]
* [[Tax risk]]
* [[Transfer risk]]
 
[[Category:Risk_frameworks]]

Revision as of 14:34, 5 June 2016

1.

In the corporate finance context, risk refers to the degree to which future returns may vary.

Risk is often measured by the standard deviation of forecast returns.

It is often estimated by the standard deviation of historic returns, though this process is inherently error-prone when used for forecasting or for risk management purposes.


2.

In the Capital Asset Pricing Model, relevant risk is measured by beta.


3.

In a more general sense, risk refers to the unknown (or unknowable) nature of future outcomes involving, for example, market prices or market rates.


4.

The possibility of adverse effects resulting from:

- Changes in market prices or rates, or

- Changes in other general conditions in the market, or

- Other economic factors specific to the business or other organisation (such as the failure of a key supplier).


5.

The possibility of an event occurring that will have an impact on the achievement of objectives.

This includes both the upside opportunity and the downside hazard which could either move us towards or drive us away from achieving our objectives.

Risk in this context is measured both in terms of (1) its impact and (2) its likelihood.


Treasury's role in risk management

No organisation can eliminate all risk, so risk has to be managed effectively. This is best done through a risk-aware culture.

Generally, treasury is about managing risk rather than taking risks.

Many risks should be managed. Risk management is a key activity of the treasury function.


See also