Headwind and Risk policy: Difference between pages

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''Economics.''
''Risk management''.
Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise. 


In economics, headwinds are adverse conditions in the general economy, or in a specific market sector.
Risk policy should cover commercial as well as treasury approaches to exposure management.  


The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.


:<span style="color:#4B0082">'''''Economic headwinds slow M&A'''''</span>
It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.
 
:"In [Mergermarket's] assessment, following a peak in the M&A cycle during the first half of last year, increased market volatility, geopolitical tensions between the US and China, Brexit anxiety in Europe and tougher economic headwinds have precipitated a slowdown."
 
:''The Treasurer magazine, 17 May 2019, web exclusive.''
 
 
The term derives from shipping and air travel, where a headwind is one blowing in the opposite direction from the one you are aiming to move in.




== See also ==
== See also ==
* [[Adverse]]
* [[Exposure]]
* [[Anxiety]]
* [[Risk appetite]]
* [[Brexit]]
* [[Risk control]]
* [[Geopolitical risk]]
* [[Risk tolerance]]
* [[M&A]]
* [[Tailwinds]]
* [[Volatility]]


[[Category:The_business_context]]
[[Category:Financial_risk_management]]
[[Category:Financial_products_and_markets]]

Revision as of 14:08, 20 August 2013

Risk management.

Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise.

Risk policy should cover commercial as well as treasury approaches to exposure management.

The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.

It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.


See also