THE ROLE AND IMPORTANCE OF THE IMPLEMENTATION OF FINANCIAL RISK MANAGEMENT SYSTEMS

Univerzitet u Istočnom Sarajevu, Fakultet poslovne ekonomije Bijeljina, Republika Srpska, Bosna i Hercegovina
Bosnia and Herzegovina


Abstract

In order company operated freely and without affecting essential to profitability, it must pay attention to the analysis of risks that arise in their business. One of the most important risks that must be managed is a financial risk. Financial risk is the risk that results in the harmful and adverse events, but the financial consequences for the company. Financial risks can be classified into the following groups: Liquidity risk; Credit risk; Currency risk; Interest rate risk; Risk of Foreign Investments. Financial Risk Management is imposed as a need in today's business abnormal. Financial risk management involves the amortization of certain risks that are the result of unfavorable developments in financial markets. In practice, it has been shown that the implementation of this type of management or financial risk management system positively influences the improvement of business operations

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http://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:Exchange_rates_against_the_euro,_2006%E2%80%932016_(2006_%3D_100)_D_YB17.png

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