Financial Risk Management

Anticipate credit, liquidity and market shocks

We design financial risk frameworks with clear limits, early warning indicators and stress testing — so that the organisation can identify a liquidity or credit problem before it turns into a crisis.

Credit riskLiquidity riskTestes de resistência

Financial Risk Dashboard

Last 30 days

Liquidity Ratio

1.4x

Within the specified range (>1.2x)

Credit Exposure

€2.1M

Top 5 customers: 38 per cent of the total

Interest Rate Sensitivity

+100bps scenario

-€180k

Active Alerts

Credit concentration above the threshold

Areas at risk

The categories of financial risk that we manage

Credit Risk

Exposure to default by customers or counterparties, subject to concentration limits and credit assessment criteria.

Liquidity Risk

Ability to meet short-term obligations, with early warning indicators regarding the cash position.

Market Risk

Exposure to fluctuations in interest rates and exchange rates, including sensitivity analysis and hedging where applicable.

Concentration Risk

Excessive reliance on a single customer, supplier or market, with defined limits to reduce exposure.

Framework and Limits

A formal framework for financial risk appetite, with limits by category and clear monitoring responsibilities.

Testes de resistência

Simulation of adverse scenarios (rising interest rates, fall in revenue, delays in payments) to test financial resilience.

Why it matters

Financial risk rarely gives any warning before it strikes

Without clearly defined limits and early warning indicators, a liquidity problem or an excessive concentration of credit only becomes apparent once it has already reached a critical stage. The aim of a financial risk framework is precisely to allow time to react before that happens.

Frequently Asked Questions

Common questions about financial risk management

What is financial risk management?

It involves the identification, measurement and management of credit, liquidity and market risks that may affect the organisation’s ability to meet its commitments and finance its operations.

What is the difference between financial risk and operational risk?

Financial risk directly affects cash flow, credit and market exposure; operational risk covers processes, people and systems. Both contribute to the overall risk framework.

How does it relate to ISO 31000?

ISO 31000 sets out the general principles and process; financial risk management applies this process specifically to credit, liquidity and market risk.

Do you know what your actual exposure to financial risk is?

A rapid assessment identifies the most critical issues relating to credit, liquidity and the market.