AKUNTANSI INTERNASIONAL "FINANCIAL RISK MANAGEMENT"

Financial Risk Management

Financial risk management is a process that entails companies setting up guidelines to define their policy on accepting financial risk. Individuals who work in financial risk management do not make investment decisions for a company. Instead, those individuals create the guidelines that the risk-takers must follow when analyzing investments they are considering for the company. Financial risk management is defined as the practices and procedures that a company uses to optimize the amount of risk it handles with its financial interests. Senior leaders of a company that practices financial risk management should produce a written policy on financial risks they are willing to accept and follow that policy. They should also monitor the risks taken, and release reports on the results of these risks to help with analyzing them.

The main objective of financial risk management is to minimize potential losses arising from unexpected changes in currency rates, credit, commodities, and equities. Price volatility risk faced is known as market risk. Market risks contained in various forms. Although the focus to price volatility or level, accounting management needs to consider other risks. Liquidity risk arises because not all financial risk management products can be traded freely. Market discontinuities refers to the risk that the market does not always lead to price changes gradually. Credit risk is the possibility that the counterparty to the contract risk management can not meet its obligations. Regulatory risk is the risk arising from the public authorization prohibits the use of a financial product for a particular purpose. Tax risk is the risk that certain hedging transactions can not obtain the desired tax treatment. Accounting risk is the chance that a hedging transaction can not be recorded as part of the transaction to be hedged.

The principles of risk management are:

1.      Transparency

This principle requires that all the potential risks involved in an activity, in particular transactions, disclosed publicly. Risks hidden / concealed will be the largest source of the problem and, by definition, can not be managed properly.

2.      Accurate Measurements

This principle represents the science of the concept of Risk Management, and requires continuous investment to various techniques and tools that will be used as a condition of strong Risk Management process.

3.      Qualified Timely Information

This principle will also determine the measurement accuracy and the quality of the decisions taken. Conversely non-fulfillment of this principle can bring management on a risky decision fatal.

4.      Diversification

Risk Management System are either put the concept of diversification as something noteworthy. This requires constant monitoring pattern and consistent. The assumption is that the concentration of (risk) may occur at any time in line with various changes that occur in the world.

5.      Independence

Based on the principle of independence, the existence of an independent Risk Management group increasingly regarded as a necessity. This principle does not just talk about the authority and the level of responsibility of the group Risk Management and group / other units within the company, but also about about the company's vision and quality of the interrelation between the Risk Management group / other units, and also inter-group / unit carrying transaction by taking certain risks.

6.      Discipline Decision Patterns

Portions of science in Risk Management concept indeed has contributed much to the Risk Management capabilities in measuring risk, but the quality of the decision still depends on how management decides how best to use tools / specific techniques and understand the limitations of the tools / techniques such.

7.      Policy

This principle requires that the objectives and strategy of an enterprise risk management should be formulated in a Policy, Manual & Procedure are clear. Policy should clearly describe and define the company Risk Management philosophy and provide the overall approach used and the organization of the process of taking risks. The main purpose of it is to bring clarity to the process of risk management, for both internally and to external parties such as regulators and analysts.

Importance of Financial Risk Management:

1.      Growth of risk management services that quickly shows that dapatmeningkatkan management company value by controlling the financial risks.

2.      Their great expectations from investors other interested parties, so that financial managers were able to identify and manage the risks facing the market actively.

The role of accounting in the management of financial risk:

The role of management accounting assist in the identification of market exposure, quantify the balance associated with alternative risk response strategies, measure the potential that companies face a particular risk, noting certain hedging products and evaluate the effectiveness of hedging programs.

1.      Market Risk Identification

The basic framework is useful for identifying different types of market risks that could potentially be referred to as risk mapping. This framework begins with observations on the relationship of various market risk to a trigger value of a company and its competitors. And usually referred to as risk mapping cube. The term refers to the trigger value of financial condition and outposts major financial operating performance that affect the value of a company. Market risk includes foreign exchange risk and interest rate and commodity price risks and eukuitas. The third dimension of the cube mapping risks, see the possible relationship between market risk and trigger values ​​for each of the company's major competitors.

2.      Balancing quantifying

Another role played by accountants in the risk management process includes the quantification process offsets associated with alternative risk response strategies. Accountants should quantify the benefits of protected assessed and compared to the cost plus the opportunity cost in the form of lost profits derived from speculation and market movements

3.      Risk Management in the World Floating Exchange Rates

The risk of foreign exchange (forex) is one of the most common forms of risk and will be faced by multinational companies. In a world of floating exchange rates, risk management includes:

a.       anticipation of exchange rate movements,

b.      measurement of foreign exchange risk faced by the company,

c.       designing a strategy for adequate protection, and

d.      manufacture of internal risk management control.

Sumber :

Bessis, Joel (1998) Risk Management in Banking, John Wiley & Sons Ltd., West Sussex, England.
The Risk Metrics Group (1998), Exploring Risk and Managing Risk.

http://risaucul.blogspot.co.id/2014/05/manajemen-risiko-keuangan.html

https://id.wikipedia.org/wiki/Manajemen_risiko