Accounting and consolidating entry
This is the risk that goes unnoticed, often hiding in plain sight.
It’s easy to miss because its characteristics are the polar opposite of the conventional discrete risk events that everyone targets. No operations metrics are in place to monitor them.
Anyone with a credit card has experienced verification calls from the bank whenever it notices spending pattern changes.
Many businesses exposed to commodities price risk use automated program trades to execute hedging strategies when a rate change occurs.
It also reduces overall business performance, an incalculable loss., once said about the movie industry: “Nobody knows anything.