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1. Risk appetite.

More aggressive financial and operational strategies are those in which higher levels of risk may be acceptable, if they are appropriately rewarded.

Examples include:

  • Banks being willing to lend to borrowers other than very strongest credits, for an acceptable additional yield.
  • Non-financial corporates using relatively more debt, in the corporate capital structure.
  • Taking a more selective approach to hedging financial risks.

2. Negotiation.

Adopting a position that is more than usually favourable for the party taking the aggressive negotiating position, and unfavourable for the other party.

Depending on the circumstances, this may lead to a lengthening of negotiations, or their breakdown.

3. Financial reporting.

Aggressive financial reporting generally results in higher reported asset values and near-term profits, compared with more conservative financial reporting.

See also

Other resource