Any business - a risky business.To know that can threaten an entrepreneur, you need to figure out what is it that there are risks.
financial risk - is the possible loss of the organization of their property, receive less revenue than planned, or the formation of unpredictable costs as a result of conducting financial and operational performance.These risks are quite diverse, and to manage them effectively, you need to classify them.
At risk is isolated:
- permissible - material losses in an amount not exceeding the profit (typical for any business is an everyday attribute workflow);
- critical - are characterized by losses in which the funds invested in a particular project or transaction does not pay;
- catastrophic - partial or complete loss of property entrepreneur or company (the result is bankruptcy).
Consider the main types of financial risk:
1. Market risk defines the probability of reducing the value of the asset due to changes in the value of currencies, stocks, bonds, interest rates and other things.
2. Credit (shopping, bank), financial risks - the threat of partial or complete default of partners or other parties to the agreement.In order to hedge against this risk, you can attract a guarantor who will bear financial responsibility in conjunction with the debtors.
3. Tax - a financial risk, where possible losses resulting from changes in tax legislation, or because of an erroneous calculation of the tax payments of the entrepreneur.To protect yourself from this, it is necessary to use the services of a professional accountant.
4. Investment financial risks - losses arising from investment activities.To help avoid such problems can investment programs and investment manager.
5. Deposit - associated with the inability to recover bank deposits.Such risks are the result of a wrong choice of the bank, so it is worth to approach this issue seriously as possible.
6. Liquidity risk - the loss of which are formed in the process of carrying out investment projects because of the significant change in assessment of their quality.
7. Operating financial risks - formed as a result of technical errors in the production operations, emergencies, intentional and unintentional actions of personnel, equipment failures, etc.
On the basis of the scope of the risk divided into external (independent of the organization) and internal (their appearance is due to the work of the company itself).The condition for the emergence of internal risks can be inefficient building assets unskilled finance staff, incorrect characterization of business partners much more.
also risks are unpredictable and predictable.At length, they can be:
- time - associated with exposure to permanent factors and there throughout the life of the enterprise or of the time of an operation.
- of time - there are only a few stages of the operation, divided into short and long term.
also financial risks can be classified based on their facilities as follows:
1. The risks of certain operations carried out.They include all of the financial risks that arise in a particular action.
2. The various areas of economic activity.
3. The financial activities of the organization as a whole.Characterized by a whole range of risks associated with the operation of the company.
