Category:Financial risk management
Risk frameworks
'Risk frameworks' is a core technical competency for treasurers identified by the ACT's Competency Framework.
In order to explain its approach to risk management, every organisation needs a risk management framework that not only establishes the policies and processes to be followed but also articulates the risk appetite of the organisation. The process of risk management must be structured to enable visibility and support of decision making.
Identify and assess risks
'Identify and assess risks' is a core technical competency for treasurers identified by the ACT's Competency Framework.
In order to manage risk, first it must be identified, evaluated and prioritised. Strong relationships, clear communication and a straight forward process will enable treasury to work with the business in identifying financial risk - both core treasury (e.g. liquidity, working capital, foreign exchange, counterparty risk) and other financial risks that may fall under treasury’s remit (commodities, pensions etc).
Manage risks
'Manage risks' is a core technical competency for treasurers identified by the ACT's Competency Framework.
There are a variety of approaches to managing risk: Avoid, Accept, Transfer. Management techniques range from doing nothing, through changing ways of working, to undertaking external transactions that change the nature of the risk (e.g. derivatives). Select and implement the most appropriate response to a particular risk for the organisation.
Risk reporting
'Risk reporting' is a core technical competency for treasurers identified by the ACT's Competency Framework.
Stakeholders (both internal and external) need to understand how risk is being managed and whether the approach is effective. Ensure that the most appropriate risk evaluation and reporting methodology for the organisation is selected and implemented and that a feedback loop to report on remaining risks, adapt policy and refine procedures is included.
See also
...
Pages in category ‘Financial risk management’
The following 200 pages are in this category, out of 222 total.
(previous page) (next page)A
B
C
- Call risk
- Capped tender offer
- Carbon capture and storage
- Cash flow hedge
- Certificate in Treasury Fundamentals
- Certificate of ownership
- CIBOR
- Cifas
- Climate change - causes and effects
- Commercial company
- Commercial credit risk
- Commercial risk
- Committed risk
- Compliance risk
- Concentration risk
- Conduct risk
- Confiscation risk
- Conglomerate
- Consequential risk
- Contingency plan
- Contingent risk
- Corporate transaction
- Correlation coefficient
- Country risk
- Credit concentration risk
- Credit Conversion Factor
- Credit rating agency
- Credit rating risk
- Credit risk diversification
- Credit spread
- Credit spread risk
- Credit spread risk in the banking book
- Critical habitat
- CSRBB
- Cyber breach
- Cyber risk
- Cyberattack
- Cyberrisk
- Cybersecurity
D
E
F
- Faculty of Actuaries
- Fair value hedge
- FBI
- Financial instrument
- Financial Markets Standards Board
- Financial risk management
- Financial Services Compensation Scheme
- Financial Stability Board
- FLC
- FoHF
- Fractal markets hypothesis
- Fraud Compensation Fund
- Front-running
- Full faith and credit
- Funding concentration risk
- Funding risk
G
I
M
N
P
R
- R&R
- R-Squared
- Rating risk
- Regret risk
- Regulatory risk
- Reinvestment risk
- Replacement cost risk
- Replacement risk
- Reputational risk
- Rewarded risk
- Risk analysis
- Risk assessment
- Risk attitude
- Risk control
- Risk evaluation
- Risk identification
- Risk management policy
- Risk management reporting
- Risk mitigation
- Risk neutral valuation
- Risk policy
- Risk rating
- Risk reporting
- Risk response
- Risk taxonomy
- Risk tolerance
- Risk-free
- Rollover risk
- RRP
S
- S&P Global Climate Center of Excellence
- Scenario analysis
- Securities Investor Protection Corporation
- Securities Valuation Office
- Security
- Slope
- Sovereign risk
- Specific equity risk
- Specific risk
- Speculation
- Spin-off
- Spinout
- Spread risk
- SRA
- Standardised normal distribution
- STIBOR
- Structural subordination
- Swap spread risk