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Tag - Risk Management

Risk management

Risk is the possibility of something unpleasant happenings or the chance of encountering loss or harm. From Corporate finance aspect, Risk is possibility of actual PAT being different from expected PAT. Risk is the uncertainty of future cash flows. •  Risk = (the probability that some event will occur) X (the consequences if it does occur) The magnitude of probable outcomes and the probability of their occurrence together determines the riskiness of an event. Genuine uncertainty, on the other hand, cannot be [...]