Risk management in Etablissement Kazoza et Compagnie-Rwanda

Liquidity Risk Overview

Liquidity risk management has taken the forefront in risk management plans. Liquidity issues can especially be seen within the technology and financial parts of most businesses. Within liquidity risk, there are three main areas:

Funding Risks: Funding risk means that the business does not have enough cash to run the business. This is a huge worry for anyone within risk management. Funding liquidity risk can affect how well your organization operates. It has become a major risk management priority within any risk management plan.

Market Risks: Market risk usually comes in the form of items within a portfolio, items that can't ever be sold, or products that can't be sold in the market for their stated worth.

Counter party Risks: Counter party risk can almost be considered consumer-driven in many cases. For example, if your client stops paying you for something that they've bought, they have not fulfilled their obligations to you. With the recent crisis of late, companies have had to really consider these emerging risk management trends and implement risk policies. It has to become part of their overall business strategy in order to thrive in the new and more challenging environments of today (www.brighthub.com).