Capital Risk

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Capital Risk

The risk that a company will lose the amount of an investment. An investor takes on capital risk each time he/she invests in anything other than a risk-free security. Capital risk is limited to the amount one has invested. For example, if one buys a $1,000 bond, he/she will not lose more than $1,000.
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Yet few companies have a systematic process or structure in place to ensure that the full spectrum of human capital risks - not just a few, top-of-the-house issues like succession planning or the leadership pipeline - is considered as part of enterprise-level risk assessment and management.
Meanwhile, as risk managers team up with the corresponding insurance managers throughout their organizations to effect enterprise risk management and as regulations increase on public companies to identify capital risks and develop systems to manage them, the insurance industry must evolve to provide enterprisewide services.
The survey shows that human capital risks have emerged as the most threatening that companies now face," said John Keogh, Chief Executive Officer, ACE Overseas General.
The incentive significantly reduces the inherent capital risks related to mineral exploration.
regional jet components and maintenance services) could be complicated by near-term working capital risks related to the effective management of exposure to older-generation assets (aircraft, engines and components).
VendorLink is categorized as a business to business endeavor that provides corporate participants with an offset business mechanism, whereby these companies can negate certain venture capital risks and recover direct expenditures that were incurred during product development and manufacturing, through participation in an information network that facilitates the placement of selected assets and inventories to the worldwide market of both direct and indirect customers, consisting of both corporate and government entities.
In addition, Fitch believes that Keyport's product design and effective asset-liability management skills mitigate the liquidity and capital risks associated with these products.
Significantly Enhances Cash Flow and Reduces Capital Risks
Such risk factors and uncertainties include, without limitation, those which are associated with: recent political uncertainty in certain regions where the company's ports of destination are located; restrictions on the transferability of deposited shipping fees; changes in the demand for used automobiles in the countries of the company's ports of destination; changes in the prices and supply of used automobiles; economic downturns and currency fluctuations in the countries of the company's ports of destination; the availability of specialized automobile transport vessels; working capital risks associated with growth of the company's operations; and competition with other automobile transporters.
The system's modular design enables the provisioning of scaleable data solutions and the migration from narrowband to broadband services as the demand grows, with low start-up costs and minimal capital risks.
Strategic partnerships and co-developments with companies such as GST allow WFI to effectively manage our capital risks while maintaining the momentum of our network development," stated Ron Stevenson, president of WFI.
McGrath served as Accenture's capital risk officer, overseeing the financial, contract and execution risk assessments for all major Accenture deals and strategic investments and monitoring the status of critical capital transactions.

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