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Objectives of Risk Management

  • Writer: Ronald van Rensburg
    Ronald van Rensburg
  • Aug 1
  • 1 min read

Following my previous post on what risk management is, someone asked me what we really want to achieve with implementing risk management and here is my take on it. 


The main objectives of risk management is to preserve and protect the profits generated by your business or investments against various economical changes such as interest rate changes on debt, currency rate changes on currency translations or commodity and equity share price changes on trading. This will ensure that you have enough cashflow available for efficiently running a business and locking in profits to ensure that both long and short term goals are achievable.


A good risk management strategy will ensure optimized cashflow, improved inventory or equity share management and provide for accurate forecasting and additional insights to make better strategic, business and financial decisions which in turn will assist you in staying competitive over the long term. Reducing the overall volatility in your business or investment portfolio.


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