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A Study on Risk Management Strategies.

Authors :
Gupta, Suraj
Mohite, Shivanjali
Nisarga, S.
Shaikh, Muskan
Source :
REST Journal on Banking Accounting & Business; Jun2023, Vol. 2 Issue 2, p118-126, 9p
Publication Year :
2023

Abstract

This research paper explores the significance of risk management practice and corporate hedging strategies in achieving financial stability and resilience for organizations. The study emphasizes the need for comprehensive risk identification, assessment, and mitigation to navigate uncertainties and capitalize on opportunities in today's complex business landscape. The paper highlights the multifaceted nature of risks that organizations face, including economic factors, regulatory changes, technological advancements, natural disasters, and cybersecurity threats. It emphasizes the importance of risk management in various sectors, such as individuals, businesses, and governments, to protect interests and ensure long-term success. Enterprise Risk Management (ERM) is discussed as a holistic approach that considers the interdependencies and cumulative effects of risks across functional areas and business units. The research delves into risk identification, assessment, and quantification, as well as the implementation of appropriate risk response measures to mitigate potential impacts. Furthermore, the study explores the concept of corporate hedging as a financial risk management strategy to protect against adverse market fluctuations. It discusses various hedging instruments and their role in offsetting potential losses or gains from currency exchange rates, interest rates, commodity prices, and other market variables. The benefits of effective risk management and corporate hedging are examined, including financial predictability, enhanced competitiveness, and improved access to financing. The research highlights the importance of fostering a risk-aware culture, establishing robust governance frameworks, and continuously monitoring and reporting on risks. Overall, this research paper emphasizes the importance of proactive risk management and corporate hedging strategies in safeguarding organizations' financial stability, ensuring resilience, and facilitating informed decision-making in an ever-changing business environment. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
25834746
Volume :
2
Issue :
2
Database :
Complementary Index
Journal :
REST Journal on Banking Accounting & Business
Publication Type :
Academic Journal
Accession number :
171579894
Full Text :
https://doi.org/10.46632/jbab/2/2/18