6:50 am - Sunday June 25, 2017

Tag Archives: Liquidity risk

Principles of risk management

Principles of risk management

Introduction Any activity is associated with risk – a loss or gain. More so, in trade and commerce, due to complex nature of transactions and the individual characteristics of the players, commodity, practices, customs, currencies. Like in...
Risk basics

A treatise on risk basics

What is risk? Risk are of three types: Known—a risk that is recognized by all, Unknown—a risk that is known by at least one person but is not known to many and Unknowable—a risk that is totally unexpected and impossible to foresee Examples Known—...

Foreign Exchange Risk Management

The peculiarities of foreign exchange markets are –          An Over The Counter market –          Only market open 24 hours, seven days a week, 365 days a year –          No single location; no barriers –         ...

Foreign Exchange Dealing Operations

If you buy a Binny Silk Saree for your wife (or girl friend!) at T.Nagar Chennai Nalli Silks, you will naturally want to pay for it with Indian Rupees and the Nalli Silks will want to be paid in Rupees because he pays all his bills with Rupees. Likewise,...

Principles for sound stress testing practices in banks

According to Bank for International Settlements, stress testing is an important risk management tool that is used by banks as part of their internal risk management exercise. It is especially important after long periods of benign economic and...

Risks associated with investments

In any investment, an investor is exposed to several kinds of risks. The risks associated with investments are liquidity risk, market risk, credit risk, operational risk, prepayment risk and extension risk. If the investor decides to go in for...