Treasury Management Final Examination 2022

It is refer to the activity of identifying risk and reaching a state of risk that is required to achieve desired objectives.

• Risk Management

• Risk Identification

• Risk Evaluation

• Risk Mitigation

It is the uncertainty associated with the actual activity of doing business for a going concern. These risks are largely determined by the business managers in a firm and on-the-ground intelligence in global companies

• Market Risk

• Business Risk

• Operational Risk

• Liquidity Risk

It is the uncertainty regarding the financial performance caused by creditworthiness, market movements, availability of money, accounting and tax situations, and balance sheet changes. Related yet different elements exist to create financial risk for a firm.

• Operational Risk

• Business Risk

• Financial Risk

• Credit Risk

It is the uncertainty associated with the nonpayment of monies owed to a party by another party, for reasons of intent or financial or regulatory inability

• Operational Risk

• Business Risk

• Credit Risk

• Market Risk

It is refers to the uncertainty caused by the changes in market factors and environment. These could be simply moving of various market factors or the availability of capital such to include factor risk and volatility risk.

• Credit Risk

• Market Risk

• Factor Risk

• Liquidity Risk

It is the direct consequence of moves in various market factors. It is usually more easily quantifiable if one knows the extent of one ’s exposures.

• Factor Risk

• Liquidity Risk

• Operational Risk

• Volatility Risk

It is the change in the financials of the firm owing to the change in the volatility of a given market factor. Wherein vega is the used to denote the sensitivity of the value of the firm or the portfolio to changes in volatility.

• Volatility Risk

• Market Risk

• Credit Risk

• Liquidity Risk

It is the impact on the firm ’s financials by the inability to provide any entity within the group money required, when it is required, where it is required, and in the form that it is required. Any delay will cause a financial disruption and sometimes a very steep increase in the cost of funding if not planned well.

• Liquidity Risk

• Financial Risk

• Factor Risk

• Credit Risk

It is the type of financing when the legal holder of a bill (a commercial bill, such as a banker ’s acceptance draft or commercial acceptance draft) transfers it to a funding entity (such as a bank) to obtain cash (at a value discounted for the interest for the period) prior to its maturity date

• Invoice Discounting

• Bill Discounting

• Sales Discounting

• Immediate solutions

It is the purchase of a receivable or bill from the seller of goods or services, where the paying entity assumes responsibility for the collection of receivables and in some cases the credit risk as well.

• Distribution of Receivables

• Segmentation of Receivables

• Factoring of Receivables

• Classification of Receivables