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There are so many risks that a manager faces on diverting financial assets. This may include misuse of the assets and not getting the expected return on investment among others.
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What are the advantages of assets and liability management?
Advantages Of management assets and liabilities:It can help protect a financial institution or corporation against a variety of financial and non-financial risks.The mere process of identifying risks enables businesses to be better prepared to deal with these risks in the most cost-effective way.It ensures that a company's capital and assets are used in the most efficient way.It can be used as a strategic and business tool to improve earnings.
what is risk management?
Risk management is the process of determining, evaluating, and controlling the financial, legal, strategic, and security risks to the assets and profits of an organisation.
What is the meaning of financial statement level risk?
Financial statement level risks are risks of materials misstatement of the financial statements. These are the same for both audit of financial statements and audit of internal control.
What do you call a person who takes financial risks to start a company?
A person who takes financial risks to start a company is called an entrepreneur
Increase in the debt to total asset ratio Is it good or bad?
No it is not because it shows the company's use debt to finance their assets and too much debts give risks to the company's financial health and position.
What is the full form of RWA in banking?
For banks RWA means - risk-weighted assets are assets with special risks, especially loans to customers and other financial institutions or governments, weighted according to different levels of possible default. As risk is calculated differently for each type of loan
Non financial risk?
i assume by non-financial risks, you mean business risks. Business risks refer to the kind of risks that could damage the performance of the business (IE, change of management, decreasing customer base, etc)
What are the financial risks for a veterinarian?
The financial risks for a veterinarian are mainly associated with the demand for their services. A veterinarian needs to invest in modern equipment but this does not guarantee jobs.
What are the types of risks in an organization?
Types of risks in an organization, for example a business, include strategic risk and financial risk. Additional risks include operational risks and legal risks.
Person who risks money in hopes of a financial profit?
An investor risks money in search of financial profits. Typically, the riskier the investment the higher the payoff will be for the investor.
What are the three major functions of the financial manager How are they related?
a).What are the three major functions of the financial manager?How are they related? Ans: Introduction Financial Management is the efficient and effective planning and controlling of financial resources so as to maximize profitability and ensuring liquidity for an individual (called Personal Finance) , government (called public finance) and for profit and non-profit organization/firm (called corporate or managerial finance).Generally, it involves balancing risks and profitability. The decision function of financial management can be divided into the following three major areas: 1):Investment Decision: The most important decision.It begins with the firm determining the total amount of assets needed to be held by the firm.There are two types of investment decision: a):Capital Investment Decision: Involves large sums of money.The impact is critical.Example acquire a new machine or to set up a new plant. b):Working Capital Investment Decision: A more routine or schedule form of decision.Examples are determination of the amount of inventories , cash and account receivables to hold within a certain period. 2):Financing Decision: The second major decision . After deciding on what assets to buy or what securities to invest in , the financial manager would have to decide on how to finance these assets. Sources of finance -- 2 sources ; Borrowings and / or Capital. 3):Assets Management Decision: The third and the last decision. Once the assets have been acquired and appropriate financing provided, these assets must be managed efficiently . By managing currents assets effectively and efficiently, the company can increase its returns and minimizes its risk of illiquidity. Conclusion: Financial Management has become very complex over the last few decades. The area of financial has emerged into a unique area separate from either Economics or accounting. It has since developed into a very decision oriented field where internal decisions are made in context of the external financial environment with a goal of maximized shareholder's wealth.
What are the three major functions of the financial manager and how are they related?
a).What are the three major functions of the financial manager?How are they related? Ans: Introduction Financial Management is the efficient and effective planning and controlling of financial resources so as to maximize profitability and ensuring liquidity for an individual (called personal finance) , government (called public finance) and for profit and non-profit organization/firm (called corporate or managerial finance).Generally, it involves balancing risks and profitability. The decision function of financial management can be divided into the following three major areas: 1):Investment Decision: The most important decision.It begins with the firm determining the total amount of assets needed to be held by the firm.There are two types of investment decision: a):Capital Investment Decision: Involves large sums of money.The impact is critical.Example acquire a new machine or to set up a new plant. b):Working Capital Investment Decision: A more routine or schedule form of decision.Examples are determination of the amount of inventories , cash and account receivables to hold within a certain period. 2):Financing Decision: The second major decision . After deciding on what assets to buy or what securities to invest in , the financial manager would have to decide on how to finance these assets. Sources of finance -- 2 sources ; Borrowings and / or Capital. 3):Assets Management Decision: The third and the last decision. Once the assets have been acquired and appropriate financing provided, these assets must be managed efficiently . By managing currents assets effectively and efficiently, the company can increase its returns and minimizes its risk of illiquidity. Conclusion: Financial Management has become very complex over the last few decades. The area of financial has emerged into a unique area separate from either economics or accounting. It has since developed into a very decision oriented field where internal decisions are made in context of the external financial environment with a goal of maximized shareholder's wealth.
