Financial markets are the forums in which buyers and sellers of financial assets such as stocks and bonds, and commodities such as grains, oil and gold, meet. Because there are uncertainties of outcome, organizations must develop strategies to manage the risk associated with it. write a paper on business and financial risk, as follows:

Identify the major business and financial risks such as interest rate risk, foreign exchange risk, credit, commodity, and operational risks.

How do organizations measures risk and what global initiatives exist in financial risk management?

• Discussions of business risk in general, especially in the areas of operational risks, and discussion of the concept of risk management

• Discussions of some risk management frameworks, such as the four categories of possible responses to business risks—accept, transfer, avoid, and reduce, and the measuring of risk, risk tolerances, etc.

• Define each type of risk, and discuss some tools and hedging techniques in managing this particular type of risk.

• Discussions of risk measurements such as risk tolerance

• Discussions of initiatives of managing risks from global business, such as diversification, foreign exchange risk, cultural risk, political risk, etc.

Answer rating: 100% (QA)

Introduction Businesses face a myriad of risks in their daily operations Contrary to common perceptions risks are not just external to the business A large number of risks in a business emanate from t... View the full answer