财务风险管-外文翻译.docx

财务风险管理中英文资料翻译Financial Risk ManagementAlthough financial risk has increased significantly in recent years,risk and risk management are not contemporary issues. The resultof increasingly global markets is that risk may originate with eventsthousands of miles away that have nothing to do with the domesticmarket. Information is available instantaneously, which means thatchange, and subsequent market reactions, occur very quickly.The economic climate and markets can be affected very quickly bychanges in exchange rates, interest rates, and commodity prices. Counterpartiescan rapidly become problematic. As a result, it is important toensure financial risks are identified and managed appropriately. Preparationis a key component of risk management.What Is Risk?Risk provides the basis for opportunity. The terms risk and exposure havesubtle differences in their meaning. Risk refers to the probability of loss, while exposure is the possibility of loss, although they are often usedinterchangeably. Risk arises as a result of exposure.Exposure to financial markets affects most organizations, either directlyorindirectly.When an organization has financial market exposure, thereis a possibility of loss but also an opportunity for gain or profit. Financialmarket exposure may provide strategic or competitive benefits.Risk is the likelihood of losses resulting from events such as changesin market prices. Events with a low probability of occurring, but that mayresult in a high loss, are particularly troublesome because they are oftennot anticipated. Put another way, risk is the probable variability of returns. Since it is not always possible or desirable to eliminate risk, understandingit is an important step in determining how to manage it.Identifying exposures and risks forms the basis for an appropriate financialrisk management strategy.How Does Financial Risk?Financial risk arises through countless transactions of a financial nature,including sales and purchases, investments and loa