Forex traders can incur losses for several reasons. The market is volatile, and so much money is being invested daily. You must understand the market and the risks involved before investing your money. The following are some of the main risk factors that traders need to be aware of. The standardised statistical measurement of currency…
To successfully trade in the foreign exchange market, you should understand the risk involved. Make sure that you have done extensive research on the market, the currency pairs you are interested in, as well as the currency pairs you are trading. It is also crucial that you understand how the market functions. Before you start…
It is best to think about your risk when you start trading currencies. The foreign exchange market is the largest financial market in the world. It involves trillions of pounds. It is not only high risk, but it can also be very volatile. You can incur significant losses on any trade when trading the most…
Risk management requires constant education and keeping up with relevant news, trends and issues. Not so long ago, no one had heard of ransomware. Now, it’s one of the greatest cybersecurity threats that companies face. News sites and industry journals should be regular reading material for risk managers.
No sports team ever wins by only playing defense — and that applies here, too. If risk managers look at how things affect the business as a whole, they might come up with a better way for their organization to operate. Part of a risk manager’s job is to see the big picture — and…
After preparing the ranked list of risks, a risk manager then needs to lead the process of planning how to manage them. That could include accepting risks that are deemed reasonable based on an organization’s agreed-upon risk appetite and risk tolerance or adopting strategies to mitigate risks so they pose less of a business threat. In other…
After assembling a list of potential business risks, risk managers need to be able to do a risk assessment and then rank the likelihood and severity of each risk. They should create and regularly update a list that notes the most likely to least likely risks, as well as the most severe to least severe ones. This…
To identify and estimate risks to a company, risk managers need to understand how the business works. They can’t say finance doesn’t matter because they’re in IT, or vice versa. Business understanding is a must — especially if the risk manager aspires to join the C-suite in the future.
If there’s one thing governments do well, it’s regulating things. Regulations are constantly being added and updated. Risk managers must invest some of their time to stay up to date on all the changes and understand new and evolving regulatory requirements.
Risk managers need to know the potential cost of network outages and security breaches, as well as the likely financial impact of other business risks. Ultimately, financial risk will get everyone’s attention in the C-suite and individual departments. The costs of lost productivity, lost income and financial penalties can be crippling to a business if…
