Risk is the ‘effect of uncertainty on objectives’. Risk may be a single event or a set of circumstances that affect, adversely or beneficially, the achievement of objectives. There are several form of risks comes in form of  liquidation risk, funding risk, interest rate risk, foreign exchange risk, commodity price risk, credit risk or counterparts risk, operation risk , economy disaster risk/sustainability risk and risk transfer.

In the context of contemporary risk management, uncertainty exists when there is an inadequate or incomplete knowledge or understanding of an event, its likelihood and/or its consequences.

Financial risk management refers to the set of principles, framework, culture, processes and coordinated activities to direct and control an organisation with regard to many risks that can affect its ability to achieve its objectives. Effective risk management increases the likelihood of achieving objectives, identifying and pursuing opportunities and avoiding or minimising harmful surprises.

They will also be able to provide clients with new insights that they may use to drive more-inform decision within their organizations about how best to tackle and monitor this threats. 

Our understanding of the issues around risk – The risks you can see as well as the ones you can’t – inspire us to ask better questions. By teaming globally with you, we create innovative answers that can help you see risk management as a means to accelerate your performance.

Capital Cak can help you with:
1) Liquidation Risk – Liquidity risk occurs when an individual investor, business, or financial institution cannot meet its short-term debt obligations.

2) Funding Risk – The risk associated with the impact on a project’s cash flow from higher funding costs or lack of availability of funds.

3) Interest Rate Risk – The potential for investment losses that result from a change in interest rates.

4) Foreign Exchange Risk – refers to the losses that  an international financial transaction may incur due to currency fluctuations.

5) Commodity Price Risk – Commodity risk is the potential for changes in commodity prices to result in losses.

6) Credit Risk or Counterparts Risk – Credit risk, or default risk, is the risk that a financial loss will be incurred if a counterpart to a (derivatives) transaction does not fulfil its financial obligations in a timely manner. 

7) Operation Risk – Operational risk is the prospect of loss resulting from inadequate or failed procedures, human error, systems or policies.
• Employee errors
• Systems failures
• Fraud or other criminal activity
• Any event that disrupts business processes

8) Economy Disaster Risk / Sustainability Risk – A economic disaster is a sudden, calamitous event that seriously disrupts the functioning of a organization or individual and causes human, material, and economic or environmental losses that exceed the organization or individual ability to cope using its own resources.

9) Risk Transfer – Risk Transfer is characteristic of a company that prefers less rather than more risk, and is willing to pay a price for protection (via reduction, transfer, hedging). 

Furthermore, businesses can choose for our Control and Risk Self Assessment (CRSA) services, it provides a framework for businesses to self review, assess and design optimal control frameworks to manage risks and achieve business and quality objectives.

Organisations rarely have the necessary resources to implement CRSA and our experienced professionals can facilitate the exchange of leading practices and assist you to develop and implement cost-effective control and risk management systems.

Let’s us help your business