Financial Risk Management Australia Report 2022

Running head: Financial Risk Management
Financial Risk Management
Name of the Student-
Name of the University-
Author’s note-

Financial Risk Management1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Use of derivatives........................................................................................................................2
Maturity Distribution...................................................................................................................3
Risk weighted assets and capital adequacy.................................................................................3
Capital Adequacy.........................................................................................................................4
Conclusion.......................................................................................................................................5
Reference List..................................................................................................................................6

Financial Risk Management2
Introduction
Financial Risk Management is the procedure practiced of economic value in a company
using the financial instruments in order to minimize the degree of risk. The attribute deals with
identifying the sources, measuring it appropriately and applying plans to implement it
correctively. Use of derivatives has been highlighted in this report. Assets, gain and losses,
accounting standard has been discussed. Maturity distribution of assets and liabilities featuring
the company been involved in the report, risk weighted assets and capital adequacy has been
elated in accordance to annual report of the firm (Brown and Ulgiati. 2018).
Discussion
Use of derivatives
Total cash and due from banks is $16,665, which means they will be receiving this
amount of money from the particular entities. Trading account securities of the company amount
to $32,506 which quite higher than the previous years. Federal funds which are sold in the
market and securities purchased are 12,732$ and securities which are considered buying under
resale agreement amount to 12,732$. Treasury securities in the market is $50,566 this security is
safer because it is been guaranteed by Australian government itself (Schuster et al. 2018). The
amount of value possessing by the security is profitable to the government and the investors
Plants, equipment of the company stands to $2,383, and intangible asset is $29,210. Gains and
losses of the company is referred to when first half profit which came in at $4.6 billion which is
quite lower comparing to last year’s profit at $4.9 billion (Commbank.com.au. 2019). Cash profit
of company measures out one-off gains and losses, which resulted marginal profit to billions.
However, risk and compliances investments resulted to outflow of $432 million, which is two-