Learn about some of the things risk committees and risk managers do to monitor and manage risks.
- We've talked a lot about risk.…And you probably want to know…how do people actually manage risks…in their day-to-day jobs.…Risk managers, committees, executives, and advisors…monitor risks using a process, matrix, and data.…In this video, we'll discuss the hands-on process…that risk professionals use to monitor…and manage various financial and non-financial risks.…Risk management professionals use a mix of quantitative…and qualitative tools to monitor risks.…
Some of it's based on hard numbers,…but some of it's based on research…designed around the concept that data…is really just the plural of anecdote.…Before risk assessments are made,…risk managers pull together all the data that matters.…Quantitative data are taken from financial markets…and those are based on predictive correlations…or they may come from government sources.…Let's look at three examples of risk…that managers are using in a quantitative way.…
First, a country risk manager is very concerned…with the level of currency rates.…Major moves present big risks…
Jason Schenker of Prestige Economics discusses nine types of corporate risk, including financial and nonfinancial risks. He explains the difference between direct risks that companies face constantly, as well as indirect risks that usually come from vendors, competitors, and counterparties. Then he covers how risks are typically resolved, either by elimination (divestiture or acquisition), transfer (hedging or insuring), offset (creating a natural hedge), or ownership (keeping the exposure). Finally, he reviews how corporations can actively measure and monitor risk by appointing dedicated risk managers, officers, and committees.
- Understanding risk in corporations
- Risk management process
- Nine different types of corporate risks
- Financial market risks
- Direct and indirect risks
- Risk management solutions
- How corporations actively manage risk