Advanced Business Vocabulary

In financial risk management, companies employ various strategies to minimise potential losses. One common approach is , where businesses invest in a variety of assets to reduce exposure to any single risk. Another strategy is , which involves using financial instruments like options and futures to limit losses from adverse market movements. Companies must also manage their exposure to , which is the risk that borrowers will fail to repay loans. During times of economic uncertainty, market can increase, making it crucial for businesses to stay agile.

To ensure the ability to meet short-term obligations, maintaining is critical. Furthermore, businesses must always adhere to government regulations and industry standards to remain in with the law. Some companies use financial products such as to hedge against unpredictable risks. Additionally, ensuring in financial reporting can boost investor confidence and improve risk management.