Financial Risk
When managing finances, there is always a risk in whatever the circumstances. Therefore in financial management, the risk is inherent, and this is why we are addressing the risk management area broadly along with the corporate finance topic.
Therefore, corporate financial risk management would involve company risk management & foreign exchange risk. However, Company risk arises in a situation where the company is considering expanding its portfolio further. Moreover, then the company is considering more investment options to grow its business.
Above all, Under foreign exchange risk, we will address transaction risk, translation risk & economic risk. Moreover, in this section, we will broadly discuss mitigating the uncertainty in the aspects of currency risk & interest rate risk. For instance, Internal & External hedging techniques.
