The VIX Index reflects the equity and options markets’ expectation of earnings volatility. Companies with deteriorating credit statistics are more likely to experience high equity price volatility than companies with a stable credit trend. As financial profiles of companies improve and the uncertainty about their future earnings declines the hedging costs to invest in those [...]
When mitigating risks, start by reducing or eliminating those that result only in cost, essentially non-trading risks. These might include property damage risks, legal and contractual liabilities and business interruption risks, and can be thought of as the “fixed costs” of risk. Reducing these can be achieved with techniques such as quality assurance programmes, environmental [...]
It is harder to assess the risks inherent in a business decision than to identify them. Risks that lead to frequent losses, such as an increasing incidence of employee-related problems or difficulties with suppliers, can often be overcome using past experience. Unusual or infrequent losses are harder to quantify. Risks with little likelihood of occurring [...]
While the use of long-term debt clearly allows you to purchase the things that help you increase your net worth and employability, they can also present a number of risks. Whether you are considering taking out your first long-term loan, or you are re-evaluating your past choices, there are a number of important risks and [...]
My name is Emily Mortimer. I'm an academy professor with a degree in economy and considerable experience in training both students and private contractors in matters of business, finances and money management.