Franchise viability risk and Partnership: Difference between pages

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''Liquidity risk - banking.''
1.  ''Law''


Franchise viability risk arises when a firm takes actions, despite having no legal obligation to do so, in order to preserve its reputation, and where these actions cause unforeseen liquidity outflows.  
A partnership exists where two or more individuals enter into business together.


Failing to take these actions may damage the firm’s franchise, which could impede access to wholesale markets or cause significant outflows.  
Governed in the UK by the Partnership Act 1890 and the Limited Liability Partnerships Act 2000.


The associated outflows are uncertain before the event, as there is no associated contractual obligation.


2.


An example is agreeing to requests from debt investors to buy back debt immediately, before its contractual maturity.
More broadly, any collaboration between different organisations or other entities.
 
 
Sometimes abbreviated to ''franchise risk.''




== See also ==
== See also ==
* [[Bank]]
* [[Corporation]]
* [[Franchise]]
* [[Drawings]]
* [[Funding]]
* [[Firm]]
* [[Funding liquidity risk]]
* [[General partner]]
* [[Funding risk]]
* [[Limited liability partnership]]
* [[ILAA]]
* [[Limited partner]]
* [[ILAAP]]
* [[Limited partnership]]
* [[Liquidity]]
* [[LLC]]
* [[Liquidity Coverage Ratio]]
* [[Public private partnership]]
* [[Maturity mismatch]]
* [[Trans-Pacific Partnership]]
* [[OLAR]]
* [[Unincorporated]]
* [[Prudential Regulation Authority]]
* [[Reputational risk]]


[[Category:Identify_and_assess_risks]]
[[Category:Compliance_and_audit]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Liquidity_management]]

Revision as of 16:34, 14 June 2022

1. Law.

A partnership exists where two or more individuals enter into business together.

Governed in the UK by the Partnership Act 1890 and the Limited Liability Partnerships Act 2000.


2.

More broadly, any collaboration between different organisations or other entities.


See also