1. In the financial world, risk can be defined as “any event or possibility of an event which can impair corporate earnings or cash flow over short/medium/long-term horizon.” Corporate earnings or cash flows have a bearing on the wealth of the shareholders through valuation of the corporation. Discuss Risk Management to avoid financial crisis.
2. Express your idea of the supervisory review process that ensures that not only the banks have adequate capital to support all the risks in their business, but also to encourage them to develop and use better risk management techniques
3. The financial statements, basically comprise two statements, viz. income statements or profit and loss account and the balance sheet. They are usually prepared at the end of the accounting period, hence they are also termed as final account of the company. In case of companies, the final accounts have been termed as annual accounts and balance sheet. Section 210 of the Companies Act govern the preparation of the final accounts of a company. Explain the important provisions regarding the preparatic- of the above accounts with suitable example.