Employees may put themselves at potential risks when reporting issues that result in financial risks as follows;
Concentrating only on narrow measures of risks
Failing to communicate issues
Overlooking knowable risks
Focusing on narrow measures
Apart from problems captured by various financial models, there are several challenges with these approaches that cannot capture. Employees may assume these problems resulting in reporting financial issues.
Failing to communicate issues
Poor, inaccurate data collection data to the board of managing financial risks will ultimately make wrong financial decisions.
Overlooking knowable risks
Occasionally, employees may overlook certain issues connected to financial risks, including those related to hedging strategies and those that arise from a certain time.
Ways employees mitigate financial risks.
By maintaining good records
They should develop an effective and reliable recording system that can be accessible at any time. A clear record system saves money and time.
Performing quality control tests
The management should implement employees’ service reviews to analyze their performance effectiveness to reduce possible risks in the finance sector.
Reference
Frederiksen, T. (2018). Corporate social responsibility, risk, and development in the mining industry. Resources Policy, 59, 495-505.
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