What is risk management? Is it important for companies going international?What are the main challenges of global financial management?
challenges: currency exhange rates, bank interest rates are different in each country, distance between customers, etc
risk management- is activity directed towards the assessing, mitigating (to an acceptable level) and monitoring of risks. In some cases the acceptable risk may be near zero. Risks can come from accidents, natural causes and disasters as well as deliberate attacks from an adversary. In businesses, risk management entails organized activity to manage uncertainty and threats and involves people following procedures and using tools in order to ensure conformance with risk-management policies.
It is very important for companies going international because risk is higher than if you were doing it only at home. Chances of accident are higher, risk of economy downfall is increased, and the chance of failing is higher.
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