Most businesses worldwide are exposed to financial risks. From the grocery store next to your house, to the big company that provides you with light and water everyday. That is not a mystery. However, every company should follow some principles in order to mitigate that risk. This process is called Financial Risk Management. They are basically a series of strategies that determine how a company can react when crisis occur. In addition to avoiding risks, businesses can also transform these challenges into opportunities to make the company grow. Are you interested in finances and risk mitigation? Do you want to learn how to mold risk mitigation into opportunity? Keep reading!

Can Financial Risk turn into opportunity?

Unpredictability is constant in business, but a strong risk management strategy can help companies adapt and grow. Financial analysts are trying to make companies understand the need of enhancing their financial risk strategies. To begin with, risk management should not only focus on defence. It should also concentrate on identifying new business opportunities that can result from volatility, market changes or other risky changes in the market. However, it is very difficult for professionals to manage effectively this kind of mitigation strategy and turn it into opportunities.

IFAC’S (International Federation of accountants) has come up with their latest report: Enabling the Accountant’s Role in Effective Enterprise Risk Management. This report outlines the potential of financial corporates to not only identify and mitigate financial risk. But also to discover new opportunities that could help their companies grow and achieve more success. The appropriate risk management strategies are increasingly important for companies if they want to have long-term results.

How can Financial Risk Management be successful?

Effective risk management strategies are possible for professional accountants in order to identify both risks and opportunities for a business. In the report mentioned above, there are 3 key strategies that work for financial corporates and accountants. These include aligning their risk management activities with broader efforts to create value for their organisations. Another key strategy is to use enterprise risk management to support the creation of actionable insights. The last one is to encourage companies to provide data sharing across department to strengthen risk management competences.  

The chief financial officer (CFO) of a company has to have precise risk management responsibilities in order to achieve greater results. These contributions are aimed to strategic and operational risk management. Apart from that, external auditors and accountants are facing rising pressure to mitigate risk in the middle of market volatility. In this sense, auditors are accepting automation to mitigate the risk of errors and non-compliance.

What will happen?

Financial corporates are beginning to understand that risk mitigation can include identifying opportunities. Nowadays they are using data analytics to search for anomalies in different areas of risk. For example, in areas such as fraud risk or revenue-recognition areas. Financial accountants, chief financial officers and finance teams must also accept this shifting view of enterprise risk management. The result will be to identify opportunity and help the company achieve its goals.

What can you do?

Are you convince now of the ways risk mitigation can turn into opportunities for a business? If you are the owner of a company or a financial worker this is a big advantage for you. Using risk management processes and structures to identify and mitigate a wide variety of risks. That way, your business will be in a stronger position to respond to crisis and grow. However, if you have just finished a degree on finances and want to learn more we have got the solution. In the University of Alcalá we offer you the Master in Financial Risk Management. This Master aims to develop professionals with a deep and comprehensive understanding of regulations and methodologies to manage financial risk. It is designed to fulfil the raising demand for professionals with efficient ways to anticipate, measure and mitigate financial risks.

What is more, we also offer you a degree in Financial Risk Management from the prestigious University of Alcalá. One of the oldest and most renowned universities internationally. Here, you will also learn innovative methods with a strong practical focus. And in addition, the university offers a strong faculty of knowledgeable professionals teaching core courses in their areas of expertise. This could not get any better. Do not hesitate more and join our master if you want to become the best professional on financial risk management. Please, contact us if you need any kind of information about the course. We are waiting for you!

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