Any type of business is continuously associated with any threat of material loss. And in order to protect yourself from such a phenomenon and effectively cope with financial difficulties, you should familiarize yourself in advance with all their types and features.
Risks can be conditionally divided into two groups. The first is the risks that literally all commercial structures are subject to, even the newest and smallest in terms of production. This group includes inflationary, credit and tax risks. The second group includes the most "exotic" types of risks directly related to the expansion of production. These are currency, interest, investment and deposit risk.
The first group of risks
Inflationary risk implies the likelihood of depreciation of the real value of financial assets, as well as the planned income from the execution of various transactions, which occurs due to the annual growth of inflation. In order to minimize this threat, develop the right financial asset management program. For example, you can use a freely convertible currency that can be easily converted at any convenient time into the national currency.
Credit is the risk associated with a possible partial or complete default by partners, as well as by other parties to the agreement of the obligations specified in the agreement. To insure yourself against such a problem on your own even at the initial stage of the formalization of the transaction, attract guarantors, who, along with the main debtors, will be held liable.
Tax risk is a possible loss of an entrepreneur associated with changes in tax legislation or with mistakes that the businessman himself makes when calculating and paying tax payments. The most optimal solution in this situation is to seek help from a professional accountant.
Second group of risks
Foreign exchange risk is the estimated loss that could arise from adverse short-term or long-term fluctuations in the exchange rates used for financial transactions. A well-designed policy to stabilize such situations, for example, by using mixed types of settlements, will help to minimize the risk or prevent it completely.
Interest is a loss that occurs due to sudden changes in the specific interest rates of the financial market - credit, deposit, etc. To prevent losses from becoming catastrophic, give preference only to those credit institutions and banks that have a stable and reliable interest rate policy.
Investment risk implies the occurrence of material losses in the course of investment activities. In this situation, specially developed programs can help, as well as the qualified services of a manager who is able to invest money as efficiently as possible.
Deposit risk is associated with the likelihood of non-return of deposits by banking institutions. This can happen if the bank performs the deposit operations entrusted to it in bad faith.
