FINANCIAL RISK
MANAGEMENT
Robertus Bayu Winarto
Experience in Accounting, Finance, Tax and Costing
(Retail, and Manufacture Industry)
Monday, Februari 27th, 2023 Provided by :
Scope of discussion :
What is Risk?
Types of Risk that can influenced the business
What is “Financial Risk Management”
The Purpose and Limitation
“Advantages” vs “Disadvantages”
“Risk Management Framework”
“Financial Risk” vs “Business Risk”
Types of “Financial Risk Management”
Case Study
The probability that some event will
cause unpredictable impact to the
healthy of business weither it’s
“Good impact” or “Bad impact”
Types of Risk that can influenced the business
Price Risk
Force Major
Legal Risk
Risk
Financial
Health
Business
Environmental Goals Financial Risk
Risk
Vision
And
Mission
Communication
Production Risk
Risk
Human
Resources Risk
is the practice of protecting economic value in
a firm by managing exposure of financial
risk,operational risk,credit risk and market risk
To minimize the impact of the risk that could be occur
To prevent the impact of the risk based on identify and analyze
The all the possibility
Purpose To help company to achieve goals
To help make decision especially for the event that have a huge
impact in the future
Sometimes minor risk aspect could impact the entire project
The decision, this could be unexpected result
Limitation It could create a fake sense of decision because the process is
focus in the past neither than the future, the future is always have
an unexpected risk
Financial risk can be analyzed
through various ratios to
determine the healthy of the Financial Risk, if not
business managed at the right
time with the right
strategies, can cause
Reduction in tax damage to financials
liability and risk and reputation
management of a
company can turn
financial risk into a
long-term advantage
Cannot be Control
Advantages if occur by force
Disadvantages majeur event
Financial risk is an
alarm to avoid
further damage
Financial risk can impact
the entire sector, market
segmen, and the whole
Financial risk can tells economic.
whether such a company
is worth it or not
Financial Risk Management Framework
Step 1 Step 2 Step 3 Step 4 Step 5
Planning Analyzing Set Priorities Implement Monitoring
Accept the risk, but
no action to
decrease the risk Find another
just prepare a Risk way
contingency plan! Avoidance
How To Risk
Risk
Retention Manage Reduction
RISK?
Risk Accept the risk,
find how to
Accept the risk, Sharing minimize the
but find another
party to help impact!
manage this risk
Financial Risk vs Business Risk
Measurement Financial Risk Business Risk
In the case of business and
Business risk is generally related to the
Concern government, financial risk is the
inefficiency in operations.
inability to pay off its debt.
Business Risk is inevitable as long as
Financial risk can be caused due to
the business continues to operate, as
Reasons the high burden of debt instead of
the business needs growth and
equity to generate better returns.
expansion, which includes risk.
Business risk can be managed by
Financial risk can be managed by
managing the operation process,
How To balancing equity and debt and
reduction in the cost of production,
Manage using debt for business growth for
technical upgrades, and new
better returns.
strategies.
Debt to Asset ratio, debt to equity
Benchmarks Change in Revenue and EBIT
ratio, the Interest Coverage Ratio
Quiz time :
Sebutkan framework Financial Risk Management?
Financial Risk Management
CREDIT RISK REFERS TO THE POSSIBILITY OF A COMPANY
THAT FAILURE TO REPAY A LOAN OR DELAYS IN THE PAYMENT
TO SUPPLIER, ETC.
MARKET RISK REFERS TO THE POSSIBILITY OF NEGATIVE
MARKET FEEDBACK TO THE COMPANY.
OPERATION RISK REFERS TO THE RISK OF LOSSES
ASSOCIATED WITH THE OPERATIONS OF A COMPANY’S
RESOURCES
HARD TO SELL AN ASSET HARD TO GET FUNDING
DUE TO LACK OF MARKET FROM THE BANK/OTHER
SISTER COMPANY/OTHER
BUSINESS
LIQUIDITY RISK REFERS TO THE POSSIBILITY THAT HOW
MUCH LIQUID OF AN ASSET OWNED BY COMPANY TO PRODUCE
PROFIT AND CASH FLOW TO THE COMPANY.
Quiz time :
Sebutkan apa saja risiko yang harus kita Analisa dari Financial Risk
Management?
-Robertus bayu W.-
Monday, Februari 27th, 2023
