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Financial Risks and Risk Management in XYZ Corporation

   

Added on  2023-06-11

5 Pages397 Words50 Views
Financial Risks
Name
Institutional Affiliation

Financial Risks
The financial risks associated with this financing solution include:
Credit, specific, operational, liquidity, market, and equity risk.
Credit risk refers to default risk, and it is linked to borrowing.
If the XYZ Corporation fails to repay the loan, it will default (Cox,
Brounen & Neuteboom, 2015).
Investors will suffer from decreased income from repayments
and lost interest and principle.
Creditors will experience increased debt collection costs.

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