Sources and Type of Risk Toga B. Simatupang SE‚ MM‚ CPLHI‚ CICA‚ RFP PPAK Univ. Trisakti – Risk Management Origin of Risk • Arabic word : Risq “anything that has given to you (by GOD) and from which you draw profit” • Latin word : Riscum “unfavourable event” • French word: Risque “nothing venture nothing gained” • English word : Risk chance of negative outcome unexpected outcome chance of bad consequences hazard‚ loss‚ etc Definition of Risk “the likelihood
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Exchange Risk Currency risk is also called the foreign exchange risk or foreign exchange exposure‚ refers to a period of international economic transactions in foreign currency-denominated assets (or creditor) and liabilities (or debt)‚ caused by fluctuations in the exchange rate and its value will go up and possibilities. Risk of stake-holder including government‚ enterprises‚ banks‚ individuals and other sectors‚ they are facing the risk of exchange rate fluctuations. Classification 1. Transaction
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Risk management benefits 1. More effective strategic planning Effective strategic planning means the objectives set by the companies suit the company’s operations capabilities and the planning helps the company preserve its values and seek improvement. Risk management means coordinates activities to direct and control the organization with regard risks. The coordination between activities helps the company to communicate and understand the business activities as a whole‚ this will let
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For example‚ Odell and Commander identify some risk factors for homelessness among people with psychotic disorders as they recruited them from mental services. According to their research about psychotic disorders‚ the data from interviews and medical records showed High rates of severe mental illness amongst single homeless populations have been consistently reported in the literature. The reasons for this disturbing finding arise‚ at least in part‚ from structural features in our society are
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require a risk premium over bond yields to bear the additional risks of equity investments. While models such as the two-parameter capital asset pricing model (CAPM) or arbitrage pricing theory offer explicit methods for varying risk premia across securities‚ the models are invariably linked to some underlying market (or factor-specific) risk premium. Unfortunately‚ the theortical models provide limited practical advice on establishing empirical estimates of such a benchmark market risk premium. As
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Section 1 A Risk Management Plan is a document that a project manager prepares to foresee risks‚ estimate impacts‚ and define responses to issues. It also contains a risk assessment matrix. A risk is "an uncertain event or condition that‚ if it occurs‚ has a positive or negative effect on a project’s objectives." Risk is inherent with any project‚ and project managers should assess risks continually and develop plans to address them. The risk management plan contains an analysis of likely risks with both
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Risk Taking “C’mon! Another can’t hurt!” called Bob. At only 17 years of age I had been reluctant to have a drink‚ but I couldn’t stop the might of peer pressure. I hesitantly took another can‚ but before I knew it Bob was on the ground‚ moaning and bleeding all over the place in the midst of a brawl. We’ve all been in this situation before where there’s been too much alcohol consumed but how often‚ especially for teenagers‚ does this apparently harmless fun‚ end in tragedy? Young people are hospitalised
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Risk and Return Assignment Questions 1. Suppose a stock begins the year with a price of $25 per share and ends with a price of $35 per share. During the year it paid a $2 dividend per share. What are its dividend yield‚ its capital gain‚ and its total return for the year? 2. An investor receives the following dollar returns a stock investment of $25: $1.00 of dividends Share price rise of $2.00 Calculate the investor’s total return. 3. Below are the probabilities for the economy’s five
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and parts 5 companies: Altman Z score is calculated for the following companies to check their default risk classification for 3 years that are 2009‚ 2010 and 2011. * Agriautos industries Ltd * Atlas battery Ltd * Honda atlas cars Ltd * Exide Pakistan Ltd * Pak Suzuki motors Ltd Altman’s Z-Score model: Altman’s Z score model is used to classify the borrower’s default risk. This classification depends on the values of various ratios of the borrower which are given specific weights
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Cell Phones in the Hands of Drivers A Risk or a Benefit Ariana Laguna English 102 Professor Barnes/Walter 10 December 2012 Outline THESIS: Unless the risks of cell phones are shown to outweigh the benefits‚ we should not restrict their use in moving vehicles: instead‚ we should educate the public about the dangers of driving while phoning and prosecute irresponsible phone users under laws on negligent and reckless driving. I. Scientific studies haven’t proved a link between use of
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