Audit Board

SEPTEMBER 21, 2023

Financial risk is the likelihood that the organization will lose money on a business investment or other decision, including loss of capital. Below are six types of risks that fall into the financial sphere, including operational risk, credit risk, market risk, liquidity risk, legal risk, and foreign exchange risk.

Market Risk 52

Market Risk Start-ups Marketability Compliance 52

Andrew Stolz

AUGUST 5, 2020

Beta is a multiple used to adjust up (Beta > 1) the equity risk premium if a stock is expected to be riskier than the market, and down (Beta < 1) if the stock is lower risk than the market. Investments are exposed to two types of risk: systematic and unsystematic. E(r) = Rf + ??(Rm

Risk-free Rate 52

Risk-free Rate Beta Weighted Average Cost of Capital Risk Premium 52

The Mentor Group

JANUARY 1, 2024

Factors such as market growth, competitive landscape, product innovation, and expansion opportunities can all affect the company’s value. Risk Factors: Evaluating the risks associated with the business, including market risks, operational risks, legal risks, and financial risks, is essential in determining its value.

Intangible Assets 52

Intangible Assets Asset-based Approach Market Risk Marketability 52

Reynolds Holding

MAY 17, 2022

This additional regulatory delay means that transactions, and in particular deals involving stock consideration, are increasingly vulnerable to market risk over a longer time horizon. With a fixed exchange ratio, the target’s shareholders bear market risk as it relates to the acquirer’s stock. Fixed Exchange Ratios.

Marketability 49

Marketability Market Risk Equity Banking 49

Sun Acquisitions

APRIL 26, 2024

However, stock transactions introduce market risk, as the value of the acquiring company’s shares may fluctuate post-merger. The right balance between cash and stock is crucial for aligning incentives and optimizing the risk-reward equation.

Finance 59

Finance Debt Financing Equity Financing Equity 59

Sun Acquisitions

MARCH 22, 2024

Market Research: Technology can help in conducting comprehensive market research and competitive analysis, aiding in understanding the market dynamics in which the target company operates. Risk Assessment: Identify and evaluate potential risks associated with the target company.

Technology 59

Technology Start-ups Market Risk Marketability 59

Valutico

DECEMBER 12, 2023

We’ve added a ‘date picker’ across key resources sections, allowing you to examine risk-free rates, corporate tax rates, market risk premium, and country ratings across any historic date you select. Resources Section Date Improvement: What? Explore this feature in the Resources section. Why Important?

Risk-free Rate 52

Risk-free Rate Risk Premium Market Risk Marketability 52

Reynolds Holding

SEPTEMBER 5, 2023

There would be no change in the capital framework for smaller firms, except that those firms with significant trading activities would be subject to the market-risk capital provisions. This new approach would include standardized risk-weights for credit, equity, operational, and credit valuation adjustment risk.

Banking 40

Banking Market Risk Equity Marketability 40

Global Finance

SEPTEMBER 9, 2024

Kelly Wen, BNY: Industries that face greater risks are seeing banks becoming more selective in making capital available to them.

Treasury 105

Treasury Banking Finance Dividends 105

Reynolds Holding

MAY 30, 2022

For policymakers, our findings suggest that the token market may to some extent become more efficient on its own because intermediaries reduce costly frictions and have an incentive to do so because they benefit from above-market risk-adjusted returns.

Finance 134

Finance Venture Capital Fund Alpha Marketability 134

Reynolds Holding

AUGUST 7, 2022

Consistent with the Basel Committee’s Risk Drivers Report, the Basel Principles expect banks to assess and manage climate-related financial risks through the lens of existing categories of risk addressed by the Basel capital and liquidity framework, such as credit risk (including counterparty risk), market risk, liquidity risk and operational risk.

Banking 45

Banking Market Risk Marketability Technology 45

Audit Board

SEPTEMBER 28, 2023

But doing so increases exposure to other threats, including cybersecurity for new and untried systems and supply chain risk where services move to the cloud or change their operating structure. Organizations need to do more than just identify market risks; they should calculate accurate and specific information about financial impacts.

Marketability 52

Marketability Market Risk Technology 52

Reynolds Holding

OCTOBER 9, 2024

Meanwhile, CFTC-regulated execution facilities sought to demonstrate that bitcoin derivatives had a legitimate economic purpose and that traditional market structures were up to the task of allocating associated market risk.

Marketability 59

Marketability Market Risk Technology 59

Reynolds Holding

MAY 15, 2024

The market risk related to a derivative contract is unrelated to its credit risk because the underlying variable tends to be unrelated to the counterparties. This follows naturally from some instruments being used to raise capital, while derivatives are generally used to manage risk.

Banking 64

Banking Marketability Market Risk Finance 64

Andrew Stolz

JANUARY 19, 2022

Key risk is intensified competition in local markets. Risk of overpaying acquisitions, impairment charges or failure to integrate the business. Identifies a company’s competitive position relative to global peers. Combined, composite rank of profitability and growth, called “Profitable Growth”. Scale from 1 (Best) to 10 (Worst).

Intangible Assets 52

Intangible Assets EBIT Market Risk Technology 52

Valutico

AUGUST 30, 2023

Market Maturity: Mature industries, like utilities or traditional consumer goods, tend to have lower Terminal Growth Rates. These industries often experience slower growth as they reach saturation points in the market.

Terminal Value 98

Terminal Value Dividends Weighted Average Cost of Capital Discounted Cash Flow 98

Reynolds Holding

MARCH 24, 2024

We did it in the 1960s when we first offered guidance on disclosure related to risk factors. [12] 12] We did so in the 1970s regarding disclosure related to environmental risks. [13] 14] We did it again in the 1990s when we required disclosure about executive stock compensation [15] and in 1997 regarding market risk. [16]

Marketability 45

Marketability Market Risk Compliance Start-ups 45

M&A Leadership Council

JUNE 18, 2024

Risk Identification: Identify potential risks in each key area (financial, operational, strategic, etc.): Financial risks: credit risk, liquidity risk, market risk, and valuation issues. Operational risks: supply chain disruptions, production inefficiencies, and IT system vulnerabilities.

Compliance 52

Compliance Marketability Technology Market Risk 52

Reynolds Holding

APRIL 13, 2022

Exams indicated it will examine mutual funds and ETFs that offer exposure to crypto-assets to assess, among other things, compliance, liquidity, and operational controls around portfolio management and market risk. critical to the operation of financial markets and the confidence of its participants.”

Compliance 45

Compliance Marketability Market Risk Technology 45

Reynolds Holding

MAY 19, 2024

Other Ruling Policies Regarding Parent Debt Exchanges The New Rev.

Market Risk 45

Market Risk Banking Marketability Treasury 45

Equilest

JUNE 27, 2024

Common pitfalls include overlooking intangible assets, underestimating operational inefficiencies, and failing to account for market risks. What are common pitfalls in valuing a security alarm company? It's essential to take a comprehensive approach to avoid these mistakes. How can I improve the valuation of my security alarm company?

Business Valuation 40

Business Valuation Intangible Assets Discounted Cash Flow Asset-based Approach 40

M&A Leadership Council

JUNE 18, 2024

Risk Identification: Identify potential risks in each key area (financial, operational, strategic, etc.): Financial risks: credit risk, liquidity risk, market risk, and valuation issues. Operational risks: supply chain disruptions, production inefficiencies, and IT system vulnerabilities.

Compliance 40

Compliance Marketability Technology Market Risk 40

Andrew Stolz

MARCH 20, 2020

The formula implies the return an investor expects from a risk-free investment plus the return from the stock in relation to market volatility. The market risk premium is calculated from a market rate of return less a risk-free rate. The formula is expressed in the following.

Beta 52

Beta Capital Structure Risk-free Rate Weighted Average Cost of Capital 52

Equilest

SEPTEMBER 14, 2024

By associating a business with the right industry, evaluators can apply industry-specific benchmarks, market trends, and valuation multiples, ensuring a more accurate assessment of the company’s worth.

Business Valuation 40

Business Valuation Specific Risk Technology Comps 40

Brian DeChesare

MARCH 13, 2024

The main risk factor in deals is executing the growth plan, not default risk due to debt (PE) or product/market risk (VC). The average deal size is bigger than early-stage VC but smaller than many PE deals; the $25 – $500 million range might be the norm for U.S.-based based firms.

Equity 105

Equity Start-ups Marketability Banking 105

Internal Audit 360

DECEMBER 8, 2022

Whatever the risk team is doing, it is not risk management , they should upgrade the methodology or be fired. Good risk managers can pretty quickly tell how does market risk cVaR compare to operational risk cVaR and whether cyber or climate are as huge as everyone makes them out to be.

EBITDA 52

EBITDA Market Risk Marketability 52

Equilest

JUNE 21, 2023

Disagreements may occur when determining the appropriate rates based on market risk, industry factors, and the specific characteristics of the subject company. Capitalization rates, on the other hand, are used to convert a single year's income into an estimate of overall value.

Business Valuation 40

Business Valuation Intangible Assets Marketability Finance 40

Global Finance

JUNE 6, 2024

Not only can market risk be better monitored, but market costs can be saved for participants: about $30 million so far, estimates CCDC. (CCDC), recently rolled out one of the world’s first public platforms for blockchain-based digital bond issuance.

Banking 109

Banking Treasury Technology Compliance 109

Appraiser Newsroom

JULY 5, 2022

Dr. Henry has over 20 years of diverse experience in the fields of business economics, consulting/advisory services, interest rate and market risk modeling, and government affairs.

Appraisal 40

Appraisal Finance Marketability Business Valuation 40

Brian DeChesare

JUNE 15, 2022

Middle Office: In these roles, you “support” the front office with tasks such as managing the market risk on trades, managing liquidity for the bank’s operations (treasury), and determining the credit risk of counterparties in trades.

Banking 98

Banking Treasury Start-ups Finance 98

Appraiser Newsroom

JULY 5, 2022

Dr. Henry has over 20 years of diverse experience in the fields of business economics, consulting/advisory services, interest rate and market risk modeling, and government affairs.

Appraisal 40

Appraisal Business Valuation Finance Market Risk 40

Brian DeChesare

APRIL 13, 2022

Probably 90% of hedge fund stock pitches use long/short equity or related strategies. Here’s an example of a “Long” pitch for Jazz Pharmaceuticals [JAZZ] , which we recommended buying at around $130 (full case study in our financial modeling course ): Eight months later, it’s trading between $160 and $170 for a gain of 27% in less than a year.

Equity 98

Equity Start-ups Banking Marketability 98

Reynolds Holding

JANUARY 25, 2023

Transaction costs have come down, and efficiency and fairness have increased in many markets. However, increased use of, and reliance on, technology has introduced new risks and, in some cases, amplified better-known market risks. Similarly, markets are more interconnected and interdependent than ever.

Technology 59

Technology Marketability Data Analysis Equity 59

Brian DeChesare

AUGUST 31, 2022

Convertible Arbitrage Definition: Convertible arbitrage is a relative value strategy in which a hedge fund profits based on the pricing discrepancy between a company’s convertible bonds and its underlying stock; the fund exploits changes in volatility, credit quality, and interest rates to make money while minimizing overall market risk.

Banking 89

Banking Risk-free Rate Equity Start-ups 89

Reynolds Holding

APRIL 12, 2022

Greenhouse gas emissions data are increasingly being used as a quantitative metric to assess a company’s exposure to—and the potential financial effects of—climate-related transition risks.

Start-ups 45

Start-ups Market Risk Marketability Technology 45

Valutico

OCTOBER 20, 2022

Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. The details of how the CAPM works is beyond the scope of this article but in short, the formula is as follows: Ce = Rf + B x (Rm – Rf) + Cp. Ce = Cost of Equity. B = Beta. (Rm Cp = Cost of Equity Premium.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Musings on Markets

AUGUST 2, 2021

For the cost of capital, I followed the traditional route of estimating the company's costs of equity (based upon its exposure to market risk) and after-tax cost of debt, to arrive at an initial cost of capital of 10.25%, which I lowered over time to 8.97%, with both numbers in Indian rupees.

Marketability 52

Marketability Start-ups Technology Market Risk 52