Hybrid and Risk policy: Difference between pages

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imported>Doug Williamson
m (Spacing and category added 20/8/13)
 
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1.
''Risk management''.  
Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise. 


Hybrid is a term used to describe a financial instrument which displays characteristics of both debt and equity.
Risk policy should cover commercial as well as treasury approaches to exposure management.  


Such instruments might be designed to be an intermediate (or mezzanine) category of capital between equity and debt, or to have some of the risk absorbing characteristics of equity and, ideally, the tax efficiency of debt.
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.  


These are 'hybrid' financial instruments.
It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.
 
 
2. ''Tax''.
 
The term 'hybrid' can also refer to an entity which is treated differently for tax purposes in different tax jurisdictions.
 
 
3. ''Green finance - greener technology''.
 
The use - in a single system - of both traditional and greener technologies.
 
For example, vehicles that can run either on electric batteries or more traditional fuels such as petrol or diesel.
 
 
4.
 
More broadly, any structure, instrument or entity with mixed, or intermediate, characteristics between two or more other, simpler or standardised structures.
 
 
:<span style="color:#4B0082">'''''Intra-day net settlement'''''</span>
 
:"There are two basic ways that domestic clearing systems settle:
 
 
:* end-of-period net settlement; and
:* real-time gross settlement.
 
 
:A third option is a hybrid of these two: intra-day net settlement. This is practised by a number of systems, such as the US Clearing House Inter-bank Payment System (CHIPS) and the Faster Payments Scheme in the UK."
 
:''Payments and payment systems - the Treasurer's Wiki.''
 
 
The term 'hybrid' originates from horticulture and farming, where hybrid plants and animals are a biological cross between two different species or breeds.




== See also ==
== See also ==
* [[Clearing House Interbank Payment System]]
* [[Exposure]]
* [[Convertible debt]]
* [[Risk appetite]]
* [[Faster Payments Service]]
* [[Risk control]]
* [[Green finance]]
* [[Risk tolerance]]
* [[Hybrid debt]]
* [[Hybrid capital]]
* [[Hybrid clearing and settlement systems]]
* [[Hybrid cloud]]
* [[Hybrid entity]]
* [[Hybrid mismatch arrangement]]
* [[Hybrid pension scheme]]
* [[Mezzanine]]
* [[Payments and payment systems]]
* [[Preference shares]]
* [[Settlement]]
* [[The Ten Point Plan for a Green Industrial Revolution]]
* [[Warrant]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_risk_management]]
[[Category:Long_term_funding]]

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