Operational risk and Opportunity cost of capital: Difference between pages

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Operational risk is the risk of adverse effects resulting from inadequate or failed internal processes, people and systems and / or external events such as adverse changes to the economic environment.
A strict measure of the cost of capital, emphasising that it is the current market cost of capital - and not the historical cost or the cash cost - that is relevant for financial decision making purposes.
 
Investors in companies generally expect the Board to mitigate or minimise these risks, to ensure that they cause as little harm as possible to the organisation.


== See also ==
== See also ==
* [[Business risk]]
* [[Cost of capital]]
* [[Opportunity cost]]
   
   


Revision as of 14:20, 23 October 2012

A strict measure of the cost of capital, emphasising that it is the current market cost of capital - and not the historical cost or the cash cost - that is relevant for financial decision making purposes.

See also


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