Unformatted text preview: 19-4 and Example 19-5, p. 544 and 545). 6. FX Risk- Mismatched currencies for CFs, Interest Income/Interest Expense, see Figures 19-3 and 19-4, p. 546 and 547. 7. Country or Political Risk- Political Instability or Interference, see examples p. 548. 8. Technology Risk- Investments in technology that do not generate increased expected efficiencies or cost savings. However, technology risk could also turn out to be beneficial when cost savings are achieved. 9. Operational Risk- Technology or support breakdowns. 10. Insolvency Risk- Inadequate Net Worth/Equity to protect against decline in asset value (e.g., bad loans), and possible bank failure. BUS 468 / MGT 568: FINANCIAL MARKETS – CH 19 Professor Mark J. Perry 1...
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- Spring '11
- 175, loan default risk, Professor Mark J. Perry, 8. Technology Risk