how the following financial risks can be mitigated and managed by the financial institutions market risk operational risk credit risk

Q: Which are the three core areas for which a financial manager is expected to devise a financial…

A: Stock market is the combination of primary market and secondary market. This will carry the company…

Q: Distinguish between different kinds of risk and the steps involved in the financial risk management…

A: The financial risk management process is the process that describes the framework for the…

Q: What type of financial institutions may offer the services for reception and transmission of orders…

A: Order receipt and transmission refer to receiving a purchase or sale order from a customer and…

Q: Who Governs The Financial Reporting Standard?

A: Accounting controls: These are the internal controls which ensure continuous reliability of…

Q: Please answer quickly: How do the objectives of evaluating financial condition differ between…

A: A creditor is a financial expert who evaluates the creditworthiness of assets, individuals, and…

Q: What reforms to the financial system might reduce its exposure to systemic risk?

A: The important act for the reforms to the financial system that might reduce its exposure to systemic…

Q: why financial markets and intermediaries should be regulated?

A: Banks, brokerage firms, and insurance companies are all governed by financial regulations.

Q: s of financial management and provide strategies used by financial managers to overcome/avoid these…

A: Step 1   Financial risk management is the process of dealing with and controlling potential and…

Q: Distinguish between business and financial risk

A: Financial risk refers to the ability of a company to handle its debt and financial leverage, while…

Q: What is the connection between securitization and the economic function of financial intermediaries?…

A: Introduction: Markets for the trade of financial securities are known as financial markets. These…

Q: Evaluate Basel III and its implication on risk management of the financial institutions.

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: what are the possible violation of financial reporting protocols ?

A: Financial Statements: Financial statements are formal records of the monetary activities and…

Q: is XBRL Taxonomy? How do you as a preparer of financial statement use the XBRL Taxonomy in locating…

A: XBRL is a global not-for-profit collaboration that governs an open international standard for…

Q: This term is often used by various industries to determine the amount of risk an individual…

A: Analysis of the given options: i) Capital- Capital is money put to use for economic purpose and…

Q: Explain how macro-prudential regulations work to limit systemic risk in the financial system.

A: Systematic risks are the risks involved within the firm functionality that can be predicted and that…

Q: Which are the three core areas for which a financial manager is expected to devise a financial…

A: Financial management deals with the raising and allocation of funds in an efficient and effective…

Q: In finance, the term risk management involves identifying the potential risks the organization may…

A: Risk management is a method of identifying, evaluating, and accepting or minimizing risk in…

Q: Discuss why financial systems are vulnerable to crises.

A: Financial system is the system that consist of marketplace, financial institutions, banks, insurance…

Q: Who are the target customers of financial intermediaries like banks, investment banks, financial…

A: Financial intermediaries refers to the business entities that are the middlemen in the financial…

Q: The whole essence of financial institutions is the prevention of institutional failures? Explain

A: Financial institutions are those companies engaged in activities that result in collection and…

Q: plain why do financial institutions exist? And why at functions do they perform? Give proper…

A: Introduction : Financial institutions refers to the entities that operate in financial market…

Q: Who does the Financial Markets Authority have oversight over

A: Financial Markets Authority- It is a New Zealand government's agency founded in 2011. It is set up…

Q: Define the Credit Risk and include in your discussion examples of the Credit Risk and why Financial…

A: A large number of financial transactions take place in the financial system and each transaction…

Q: What are the problems encountered by the financial system? What is/ are assessment to these…

A: The group of institutions like banks, insurance companies, mutual funds, stock exchanges, etc. that…

Q: The fundamental & enhancing qualitative characteristics of financial information?

A: Characteristics of Financial Information: It refers to those characteristics which financial…

Q: Explain liquid asset management as it relates to a financial institution

A: A liquid asset is an asset which can be converted into cash and marketable securities easily.…

Q: What is the significance of Financial Management? What are the advantages and disadvantages of…

A: Financial management: It is the process of organizing, collecting, managing, and distributing funds…

Q: What is financial reporting environment?

A: A short introduction to Financial Reporting- Basically it is a standard accounting practice that…

Q: A. Discuss main theories of financial intermediation and their rationale for the existence of…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: What are the NAS and IFRS Conceptual Framework for Financial Reporting's aims, principles, and…

A: Answer: Concept: Using the term "conceptual framework," we want to explain the overall goal and idea…

Q: setup in the finance system that ensures clear ownership of responsibilities. A. Macroprudential…

A: Finance system is nothing but group or cluster of institutions, such as Banking Company, Investment…

Q: Discuss the importance of establishing an effective risk management policy at financial institutions…

A: The question is based on the concept of financial risk management and its importance in financial…

Q: What is a financial risk management certificate?

A: Financial risk management course refers to the professional qualification which focus provides the…

Q: What are the arguments favoring the regulation of financial reporting?

A: Financial reporting:   Financial reporting is the procedure to communicate the information obtained…

Q: Explain two types of financial risks faced by banks operating in the financial sector, and discuss…

A: Financial Risk: The danger of losing money on an investment or business endeavor is referred to as…

Q: What are some of the current challenges facing financial regulators?

A: Financial institutions have undergone many changes in the past decades or so mainly due to…

Q: Why is the financial sector the most heavily regulated sector?  discuss you answer fully

A: Financial sector comprises of banks, investment houses, insurance firms, real estate brokers,…

Q: Explain into detail some of the difficulties associated with the financial system.

A: Financial system is the system developed or created by various financial institutions such as banks,…

Q: Compare and Contrast supervision and regulation of Financial Institutions. ( Briefly Discuss your…

A: Financial institutions refer to those companies which are engaged in providing financial or monetary…

Q: Explain the nature and main objective of the financial system.

A: Financial system helps in transferring of financial resources form one person to another person.

Q: What are the conceptual issues related to financial reporting and financial disclosures?

A: Introduction: Financial reporting is a common accounting technique in which financial statements…

Q: In finance, the term risk management involves identifying the potential risks the organization may…

A: The practice of identifying, evaluating, and implementing investment decisions depending on…

Q: What is the interrelationship among financial inclusion, financial deepening and financial…

A: Financial inclusion The quantity and democratic accountability to receive financial services are…

Q: What are the difficulties associated with the financial system and how these challenges can be…

A: Financial system is undergoing a significant change with the advancement of technology. It has…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.