财务风险管理外文翻译

1、本科毕业论文（设计）外文翻译Financial Risk ManagementAlthoughfinancialriskhas increasedsignificantlyin recentyears,riskand risk management are not contemporary issues. The result of increasinglyglobal markets is that risk may originate with events thousands of miles awaythat have nothing to do with the domestic m

2、arket. Information is availableinstantaneously, which means that change, and subsequent market reactions,occur very quickly. The economic climate and markets can be affected veryquickly by changes in exchange rates, interest rates, and commodity prices.Counterparties can rapidly become problematic.

3、As a result, it is importantto ensure financialrisksare identifiedand managedappropriately.Preparationis a key component of risk management.What Is Risk?Risk provides the basis for opportunity. The terms risk and exposure havesubtle differences in their meaning. Risk refers to the probability of los

4、s,while exposure is the possibility of loss, although they are often usedinterchangeably. Risk arises as a result of exposure.Exposure to financialmarkets affectsmost organizations,eitherdirectlyor indirectly. When an organization has financial market exposure, there isa possibility of loss but also

5、 an opportunity for gain or profit. Financialmarket exposure may provide strategic or competitive benefits.Risk is the likelihood of losses resulting from events such as changes inmarket prices.Events witha low probabilityof occurring,but thatmay resultin a high loss, are particularly troublesome be

6、cause they are often not anticipated. Put another way, risk is the probable variability of returns.Since it is not always possible or desirable to eliminate risk, understanding it is an important step in determining how to manage it.Identifying exposures and risks forms the basis for an appropriate

7、financialrisk management strategy.How Does Financial Risk?Financialriskarisesthrough countlesstransactionsof a financialnature,including sales and purchases, investments and loans, and various otherbusiness activities. It can arise as a result of legal transactions, newprojects, mergers and acquisit

8、ions, debt financing, the energy component ofcosts, or through the activities of management, stakeholders, competitors,foreign governments, or weather. When financial prices change dramatically,it can increase costs, reduce revenues, or otherwise adversely impact theprofitability of an organization.

9、 Financial fluctuations may make it moredifficult to plan and budget, price goods and services, and allocate capital.There are three main sources of financial risk:1. Financialrisksarisingfrom an organizations exposure to changes in marketprices, such as interest rates, exchange rates, and commodity

10、 prices.2. Financial risks arising from the actions of, and transactions with, other organizations such as vendors, customers, and counterparties in derivatives transactions3. Financial risks resulting from internal actions or failures of the organization, particularly people, processes, and systems

11、 What Is Financial Risk Management?Financial risk management is a process to deal with the uncertainties resulting from financial markets. It involves assessing the financial risks facing an organization and developing management strategies consistent with internal priorities and policies. Addressin

12、g financial risks proactively may provide an organization with a competitive advantage. It also ensures that management, operational staff, stakeholders, and the board of directors are in agreement on key issues of risk.Managing financialrisknecessitatesmaking organizationaldecisionsaboutrisks that

13、are acceptable versus those that are not. The passive strategy oftaking no action is the acceptance of all risks by default.Organizations manage financial risk using a variety of strategies andproducts.Itisimportanttounderstandhow theseproductsand strategiesworkto reduce risk within the context of t

14、he organizations risk tolerance andobjectives.Strategiesforriskmanagementofteninvolvederivatives.Derivativesaretraded widely among financial institutions and on organized exchanges. Thevalueof derivativescontracts,such as futures,forwards,options,and swaps,is derivedfrom thepriceoftheunderlyingasset

15、.Derivativestradeon interestrates,exchange rates,commodities,equityand fixedincome securities,credit,and even weather.The productsand strategiesused by market participantsto managefinancialrisk are the same ones used by speculators to increase leverage and risk.Although it can be argued that widespr

16、ead use of derivatives increases risk,the existence of derivatives enables those who wish to reduce risk to pass italong to those who seek risk and its associated opportunities.The ability to estimate the likelihood of a financial loss is highlydesirable.However, standardtheories ofprobabilityoftenf

17、ailintheanalysisof financial markets. Risks usually do not exist in isolation, and theinteractions of several exposures may have to be considered in developing anunderstandingof how financialriskarises. Sometimes, theseinteractionsaredifficult to forecast, since they ultimately depend on human behav

18、ior.The processoffinancialrisk managementis an ongoing one. Strategiesneedto be implemented and refinedas themarket and requirementschange. Refinementsmay reflect changing expectationsabout market rates,changes to the businessenvironment, or changing international political conditions, for example.

19、Ingeneral, the process can be summarized as follows:1、Identify and prioritize key financial risks.2、Determine an appropriate level of risk tolerance.3、Implement risk management strategy in accordance with policy.4、Measure, report, monitor, and refine as needed.DiversificationFor many years, the risk

20、iness of an asset was assessed based only on thevariabilityof itsreturns.Incontrast,modern portfoliotheoryconsiders notonly an asset s riskiness,butalsoitscontributiontotheoverallriskinessof the portfolio to which it is added. Organizations may have an opportunityto reduce risk as a result of risk d

21、iversification.In portfolio management terms, the addition of individual components toa portfolio provides opportunities for diversification, within limits. Adiversified portfolio contains assets whose returns are dissimilar, in otherwords, weaklyornegativelycorrelatedwith one another.Itis usefultot

22、hinkof the exposures of an organization as a portfolio and consider the impact ofchanges or additions on the potential risk of the total.Diversification is an important tool in managing financial risks.Diversificationamongcounterpartiesmayreduce theriskthatunexpected eventsadversely impact the organ

23、ization through defaults. Diversification amonginvestment assets reduces the magnitude of loss if one issuer fails.Diversification of customers, suppliers, and financing sources reduces thepossibility thatan organizationwillhave itsbusinessadversely affected bychanges outsidemanagements control.Alth

24、ough theriskoflossstillexists,diversification may reduce the opportunity for large adverse outcomes.Risk Management ProcessThe processoffinancialriskmanagementcomprisesstrategiesthatenablean organization to manage the risks associated with financial markets. Riskmanagement is a dynamic process that

25、should evolve with an organization andits business. It involves and impacts many parts of an organization includingtreasury, sales, marketing, legal, tax, commodity, and corporate finance.The riskmanagementprocessinvolvesbothinternaland externalanalysis.The first part of the process involves identif

26、ying and prioritizing thefinancial risks facing an organization and understanding their relevance. It may be necessary to examine the organization and its products, management, customers, suppliers, competitors, pricing, industry trends, balance sheet structure, and position in the industry. It is a

27、lso necessary to consider stakeholders and their objectives and tolerance for risk.Once a clear understanding of the risks emerges, appropriate strategiescan be implemented in conjunction with risk management policy. For example,it might be possible to change where and how business is done, thereby

28、reducing the organization s exposure and risk. Alternatively , existing exposures maybe managed with derivatives. Another strategy for managing risk is to accept all risks and the possibility of losses.There are three broad alternatives for managing risk:1. Do nothing and actively, or passively by d

29、efault, accept all risks.2. Hedge a portion of exposures by determining which exposures can and should be hedged.3. Hedge all exposures rmation to execute decisions and monitor outcomes, both before and after strategies are taken to mitigate them. Since the risk management process is on

30、going, reporting and feedback can be used to refine the system by modifying or improving strategies.An active decision-making process is an important component of riskmanagement. Decisionsabout potential lossand risk reduction provide a forumfor discussion of important issues and the varying perspec

31、tives ofstakeholders.Factors that Impact Financial Rates and PricesFinancial rates and prices are affected by a number of factors. It isessentialto understand the factorsthatimpact markets because those factors,in turn, impact the potential risk of an organization.Factors that Affect Interest RatesI

32、nterest rates are a key component in many market prices and an importanteconomic barometer. They are comprised of the real rate plus a component forexpected inflation,since inflationreducesthe purchasing power ofa lender sassets.The greaterthe term to maturity,thegreaterthe uncertainty.Interestrates

33、 are also reflective of supply and demand for funds and credit risk.Interestrates are particularlyimportanttocompanies and governments becausethey are the key ingredient in the cost of capital. Most companies andgovernments require debt financing for expansion and capital projects. Wheninterest rate

34、s increase, theimpactcan be significanton borrowers. Interestrates also affect prices in other financial markets, so their impact isfar-reaching.Other components to the interest rate mayinclude a risk premium to reflect the creditworthiness of a borrower. For example, the threat of political orsover

35、eign risk can cause interest rates to rise, sometimes substantially, as investors demand additional compensation for the increased risk of default.Factors that influence the level of market interest rates include:1、Expected levels of inflation2、General economic conditions3、Monetary policy and the st

36、ance of the central bank4、Foreign exchange market activity5、Foreign investor demand for debt securities6、Levels of sovereign debt outstanding7、Financial and political stabilityYield CurveThe yieldcurve is a graphicalrepresentationof yieldsfora range of termsto maturity. For example, a yield curve mi

37、ght illustrate yields for maturityfrom one day (overnight)to 30-year terms. Typically,the ratesare zero coupongovernment rates.Since currentinterestratesreflectexpectations,the yieldcurve providesusefulinformationabout the market s expectationsof futureinterestrates.Implied interest ratesfor forward

38、-startingterms can becalculated using theinformationintheyieldcurve.For example,usingratesforone- and two-yearmaturities, the expected one-year interestrate beginning in oneyear s timecan be determined.The shape of the yield curve is widely analyzed and monitored by marketparticipants. As a gauge of

39、 expectations, it is often considered to be apredictor of future economic activity and may provide signals of a pendingchange in economic fundamentals.The yield curve normally slopes upward with a positive slope, aslenders/investorsdemandhigherratesfrom borrowersforlongerlendingterms.Since the chanc

40、e ofa borrower defaultincreaseswithterm tomaturity,lendersdemand to be compensated accordingly.Interestratesthatmakeup the yield curve are also affectedby the expectedrate of inflation. Investors demand at least the expected rate of inflationfrom borrowers,inadditionto lendingand riskcomponents. Ifi

41、nvestorsexpectfuture inflation to be higher, they will demand greater premiums for longerterms to compensate for this uncertainty. As a result, the longer the term,the higher the interest rate (all else being equal), resulting in anupward-sloping yield curve.Occasionally,the demandfor short-termfund

42、sincreasessubstantially,andshort-terminterestratesmayrise above theleveloflongerterm interestrates.This results in an inversion of the yield curve and a downward slope to itsappearance. The high cost of short-term funds detracts from gains that wouldotherwise be obtained through investment and expan

43、sion and make the economyvulnerable to slowdown or recession. Eventually, rising interest rates slowthe demandforboth short-termand long-termfunds.A decline inallrates anda return to a normal curve may occur as a result of the slowdown.Source: Karen A. Horcher, 2005.“What Is Financial RiskManagement

44、?”.Essentialsof Financial Risk Management, John Wiley & Sons,财务风险管理尽管近年来金融风险大大增加，但风险和风险管理不是当代的主要问题。全球市场越来越多的问题是，风险可能来自几千英里以外的与这些事件无关的国外市场。意味着需要的信息可以在瞬间得到，而其后的市场反应，很快就发生了。经济气候和市场可能会快速影响外汇汇率变化、利率及大宗商品价格，交易对手会迅速成为一个问题。因此，重要的一点是要确保金融风险是可以被识别并且管理得当的。准备是风险管理工作的一个关键组成部分。什么是风险？风险给机会提供了基础。风险和暴露的条款让它们在含义上

45、有了细微的差别。风险是指有损失的可能性，而暴露是可能的损失，尽管他们通常可以互换。风险起因是由于暴露。金融市场的暴露影响大多数机构，包括直接或间接的影响。当一个组织的金融市场暴露，有损失的可能性，但也是一个获利或利润的机会。金融市场的暴露可以提供战略性或竞争性的利益。风险损失的可能性事件来自如市场价格的变化。事件发生的可能性很小，但这可能导致损失率很高，特别麻烦，因为他们往往比预想的要严重得多。换句话说，可能就是变异的风险回报。由于它并不总是可能的，或者能满意地把风险消除，在决定如何管理它中了解它是很重要的一步。识别暴露和风险形式的基础需要相应的财务风险管理策略。财务风险是如何产生的呢？无数金

46、融性质的交易包括销售和采购，投资和贷款，以及其他各种业务活动，产生了财务风险。它可以出现在合法的交易中，新项目中，兼并和收购中，债务融资中，能源部分的成本中，或通过管理的活动，利益相关者，竞争者，外国政府，或天气出现。当金融的价格变化很大，它可以增加成本，降低财政收入，或影响其他有不利影响的盈利能力的组织。金融波动可能使人们难以规划和预算商品和服务的价格，并分配资金。有三种金融风险的主要来源：1、金融风险起因于组织所暴露出来的市场价格的变化，如利率、汇率、和大宗商品价格。2、引起金融风险的行为有与其他组织的交易如供应商、客户，和对方在金融衍生产品中的交易。3、由于内部行动或失败的组织，特别是人

47、、过程和系统所造成的金融风险。什么是财务风险管理？财务风险管理是用来处理金融市场中不确定的事情的。它涉及到一个组织所面临的评估和组织的发展战略、内部管理的优先事项和当政策一致时的财务风险。企业积极应对金融风险可以使企业成为一个具有竞争优势的组织。它还确保管理，业务人员，利益相关者，董事会董事在对风险的关键问题达成协议。金融风险管理组织就必须作出那些不被接受的有关风险的决定。那些被动不采取行动的战略是在默认情况下接受所有的风险。组织使用各种策略和产品来管理金融风险。 重要的是要了解这些产品和战略方面，通过工作来减少该组织内的风险承受能力和目标范围内的风险。风险管理的策略往往涉及衍生工具。在金融机

48、构和有组织的交易所，衍生物广泛地进行交易。衍生工具的合约的价值，如期货，远期，期权和掉期，是源自相关资产的价格。衍生物利用利率，汇率，商品，股票和固定收入的证券，信贷，甚至是天气进行交易。这些产品和市场参与者使用策略来管理金融风险，与由投机者用来提高风险的杠杆作用是相同。虽然可以认为，衍生工具的广泛使用增加了风险，衍生品的存在使那些希望通过把它传递给那些寻求风险及相关机会的人降低了风险。估计财务损失的可能性是非常令人满意的。然而，概率标准的理论往往在金融市场的分析中不适用。风险通常不会孤立存在的，通常会和几个风险的相互作用，必须认真考虑在发展中国家的金融风险是如何产生的。有时，这些相互作用是很

49、难预测的，因为它们最终取决于人的行为。金融风险管理是一个持续不断的过程。随着市场需求的变化和完善，战略必须得到执行。有关的修改反映不断变化的市场利率，变化的预期营商环境，或例如不断变化的国际政治条件。一般来说，这个过程可以概括如下：1、识别并优先考虑关键的财务风险。2、确定适当的风险容忍程度。3、按照政策实施风险管理战略。4、按需要衡量，报告，监控和改进。多样化多年来，公司资产的风险评价的可变性仅仅基于其回报。与此形成对比的是, 现代投资组合理论不仅考虑了一项资产的风险，而且是经济体总体风险的组合。由于风险多样化，组织可以有机会来降低风险。在投资组合管理方面，在一定限度内给个别部件组合提供了多

50、样化的机会。一个多元化的资产组合中包含的回报是不同的，换句话说，彼此之间的关系是弱或负面的。考虑到一个投资组合的风险是非常有用的，并且应考虑改变或增加的潜在风险的总数。多样化是一个管理金融风险的重要工具。通过预设的组织，对手之间的多样化可以减少突发事件对组织所造成的不利影响而引起的风险。其中投资资产多元化减少了发行人失败的损失程度。多样化的客户、供应商和金融来源减少了一个组织的贸易被外面变化控制的负面影响的可能性。虽然损失的风险仍然存在，多样化的机会可以减少大的不良结果。风险管理过程金融风险管理过程中的战略使一个组织去管理与金融相关的风险市场。风险管理是一个动态过程，应逐步发展成一个组织和它的生意。它涉及和影