How do we measure financial risk best

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Reference no: EM132010229

1. When organizations decide to finance assets, the key is to match meaning current assets with current financing and long-term assets with long-term financing. What would be an example of this occurring in business today and what would be the disadvantage from not matching?

2. How do we measure financial risk best? Why is this such an important exercise today, especially for financial institutions?

3. Which risks do we know about in finance? Discuss each in terms of what has to happen for that particular risk to materialize.

Reference no: EM132010229

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