Danubius International Conferences, 10th EIRP & 5th AGAUC International Conferences
Risk, the element of any economic activity
Last modified: 2015-04-03
Abstract
The financial risks have appeared since the beginnings of trade relations. While the step up where they were recognized, limited and checked differed greatly. Financial losses endured by internationally famous companies, due to inadequate Risk Management activities and especially highly publicized, have raised awareness by managers of growing importance to risk management In the economic and financial life, the risk is an element of any activity, being exposed in the agenda of company managers. Unforeseeable changes in the interest rate development, the cost of a good or of the exchange rate affects not only the financial effects of an enterprise, but can cause its bankruptcy as well. Financial decisions are made depending on cash flows of contracts foreseen to come, that through excellence are unsafe.
