is risk management associated with finance ?

Question

hi!!! i am interested in doing my project on the topic" risk management " in johnson lifts pvt ltd as a part of my mba curriculam. Do risk management be related to finance ?
could u plz clear my doubt !!!

Answer 1

It would depend on the type or risk management. There is risk management associated with avoiding law suits, avoiding injuries etc. I imagine for an almost any company there is risk managment for financial stability. As a small business owner I am always trying to reduce expenses......

Answer 2

Yes, risk management is a topic under Finance. Finance is the management of revenues; the conduct or transaction of money matters generally, esp. those affecting the public, as in the fields of banking and investment. Risk Management is the process of identification, analysis and either acceptance or mitigation of uncertainty in investment decision-making. Essentially, risk management occurs anytime an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment and then takes the appropriate action (or inaction) given their investment objectives and risk tolerance.


Simply put, risk management is a two-step process - determining what risks exist in an investment and then handling those risks in a way best-suited to your investment objectives. Risk management occurs everywhere in the financial world. It occurs when an investor buys low-risk government bonds over more risky corporate debt, when a fund manager hedges their currency exposure with currency derivatives and when a bank performs a credit check on an individual before issuing them a personal line of credit

Answer 3

It has everything to do with finance. In risk management, one has a portfolio of say, stocks purchased and bonds.To manage such properly, one on his own, must monitor the activities of each stock or bond on a daily basis to follow its trends and to sell or buy more if and when the circumstances dictate. On the other hand, most people use a risk management firm that does the job for you and advises you when something is hot or is going down, or has a limited future value.

Answer 4

Yes - very much.

When you finance somebody - you have to thoroughly check up the possible risk factors that are likely to be faced and what are the chances of your recovery of the amount lent without any difficulty.

In the same way, when you borrow from sombody, the other fellow will check up these factors. And on your part you have to ensure that the money borrowed will be spent in productive lines, sufficient cash could be generated and amount borrowed can be repaid without any hassle.

So, the topic selected by you is 'the very hot topic' of the day, very very interesting. Go ahead.

Best of luck.

Answer 5

Risk management is a field of study by itself and often used by finance professionals to manage financial risk. However, the principles of risk management can be used in any other areas of business as well. Here is more info:

Answer 6

yes it is..... in organizations there is special amount tht they keep with them to overcome the risks.like to compete in the market sometimes companies need funds and it is the job of finace department to meet with those risks.