Financial Risk
What is Financial Risk?
The possibility of monetary loss arising from financial transactions, market conditions, credit defaults, or other financial factors.
Terms that appear alongside financial risk
Each of these is named in at least one of the same controls as financial risk. The number is how many controls name both.
- governance 4 shared controls
- basel iii 3 shared controls
- stress testing 2 shared controls
- machine learning 2 shared controls
- data quality 2 shared controls
- audit 2 shared controls
- operational risk 2 shared controls
Frameworks that govern financial risk
What the standards actually require on financial risk
Requirements naming financial risk across 6 standards, quoted from the control text.
The entity adjusts its present-value estimate of expected cash flows for the compensation it demands for carrying the uncertainty, due to non-financial risk, in how large the cash flows will be and when they will occur.
ifrs-17-insurance-contracts::37 · Risk adjustment for non-financial risk →Before it enters into, or materially modifies, a material arrangement the entity must (a) carry out suitable due diligence, including a suitable selection process and a check of whether the provider can keep delivering the service over time;
apra-cps-230-operational-risk-management::52 · Para 52 Due diligence and risk assessment before entering or materially modifying a material arrangement →The sustainability report contains climate statements prepared under the sustainability standards (AASB S2), notes, any statements the Minister requires, and the directors' declaration (by resolution, dated and signed) whether the substantive provisions comply...
australia-corporations-act-2001-cth::s296A-296E · ss 296A to 296E Sustainability report contents: climate statements, disclosures, standards and directors' declaration →The NDIA carries out a formal risk assessment in plan development (vulnerability to abuse, exploitation and financial risk, informal supports, decision-making ability), builds safeguards and supported decision-making into plans, sets plan management and suppor...
australia-ndis-quality-and-safeguarding-framework-2016::I-3 · Safeguards in planning, implementation and review →No U.S. person may engage in any transaction or take any action, independently or through another person, with intent to evade Part 760, or assist another U.S. person to violate or evade it;
ear-export-administration-regulations::760.4 · 760.4 Evasion →A standalone Responsible Investment Policy is developed and embedded. Baseline: non-financial risk factors considered in some decisions (for example exclusions), a high-level strategy for key areas of the portfolio and work underway to gather ESG exposure data...
principles-for-doing-business-at-lloyd-s::P8.5 · 8.5 Develop and embed a Responsible Investment Policy →Questions people ask about financial risk
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