Risk Management explained by treasuryXL
26-05-2022 | treasuryXL | LinkedIn
From a Treasury perspective, Risk Management is the practice of planning for unexpected expenditures. It is primarily about mitigating and avoiding the impact of the changing financial environment on the company’s cash flow objectives.
Risk management is a broad term, though. Depending on the context of a company’s operations, it can also have very different meanings, so it is also useful here to point out the forms of risk management that fall outside the scope of Treasury. This is not an article about governmental regulation, earthquakes, political instability, or the threat of potential new business competitors. These forms of risk are the concern of other departments within the corporation. This article is about risk management specifically within the context of Treasury.
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