adelfjohanason
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Finance is a term used to describe money and the management of money. It is the lifeblood of any business in the sense that it is needed for establishment, continuity and expansion of a business. Without adequate sourcing and proper management of finance, a business may undergo colossal liquidation.
Financial risk comes into play during decision making and management of opportunity costs attached to every decision we make.
Risk simply means relative uncertainty or the state at which the outcome of an event may deviate from what is expected. Risk is different from uncertainty because it has some level of predictability as opposed to uncertainty. Too many a time, businessmen neglect opportunities and chances for expansion just because of fear of risk. The fact that some things have risk does not mean they are unachievable. It only means that we need extra courage and hard work to achieve them. Beside every decision we take lies a risk itself.
Financial risk comes into play during decision making and management of opportunity costs attached to every decision we make.
Risk simply means relative uncertainty or the state at which the outcome of an event may deviate from what is expected. Risk is different from uncertainty because it has some level of predictability as opposed to uncertainty. Too many a time, businessmen neglect opportunities and chances for expansion just because of fear of risk. The fact that some things have risk does not mean they are unachievable. It only means that we need extra courage and hard work to achieve them. Beside every decision we take lies a risk itself.