Risk management has become the cornerstone and essence of all financial and investment decisions. It occurs every day in the financial world. Sound investments and disciplined trading are always required to be implemented within a well-defined risk management framework. This involves identifying the wide gamut of market, credit and operational types of risks, assessing them, and seeking different tools and methods to mitigate these risks for the benefit of the company under review as well as its shareholders.
Like any other worldwide business activity, risk management requires a process with a clear purpose, reliable inputs, welldesignated activities and value-added outputs. The risk management process typically includes such activities as sourcing, assessment/evaluation and quantification and monitoring of risk.
For most kinds of activity, risk is unavoidable as long as the outcome is uncertain. Therefore, taking on risk and handling it is a core management discipline. All major corporate decisions involve choices of how much risk a business can/should take and how best to manage these risks.
Financial risk management is the activity of monitoring financial risks and managing their impact. It is a sub-discipline of the wider task of managing risk and also a practical application of modern finance theories, models and methods.
The traditional role of finance within firms has been in terms of reporting and control. The modern approach is to see the financial function as actively formulating policy and directly involved in the subsequent decisions. Financial risk management involves handling those business decisions resulting from financial exposures.
As a subject, financial risk management draws on the disciplines of accountancy, economics, management science, decision theory, statistics and psychology as well as the key principles and methodologies to be found in finance.Updated on 27 January, 2019
About Informa Middle East
Informa Middle East, is part of Informa, a multinational publicly listed publishing and events company.
The Middle East office was previously known as IIR Middle East, and has been established in Dubai since 1993. Informa Middle East has grown to be the largest event organiser in the region and with over 300 staff, the office runs over 450 training courses and over 40 conferences regionally on an annual basis.
The company also incorporates Informa Global Exhibitions which organises around 130 trade and consumer exhibitions in over 38 cities across the globe. Arab Health, Cityscape, Middle East Electricity and The Bride Show are some of the flag ship events.
Aside from the public training courses, conferences and exhibitions, Informa Middle East also provides in-house training to companies as well as manages events on behalf of corporate clients. Some of the past clients include NBAD, Microsoft, Etisalat, STC, Mobily, and ADNOC.
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