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Treasurers: are we rational decision-makers?

Behavioral finance was first taught in universities at the beginning of the new millennium. Before that, traditional economists based their theories on the assumption that efficient markets are driven by the rational behavior of market participants. The study of behavioral finance suggests that this is not always so.

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A Structured Approach towards a Best in Class Financial Risk Management Framework

The increased volatility in the commodity and foreign exchange markets, augmented counterparty risk and the low interest rate environment have led to an increased focus on financial risk management (FRM) for multinational corporations (MNCs).

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The corporate road to credit portfolio management

According to Intrum Justitia, bad debts of more than € 350 billion were written off in Europe in 2013, which is around three percent of all outstanding transactions. Internal research into Dutch companies with debtor portfolios in excess of € 250 million reveals that some companies have had to write off up to 10 percent of their net result on their customers. According to some estimates, around 25 percent of companies actually go bankrupt due to bad debt losses alone. It is with good reason that many annual reports state that credit risks are often the biggest threat to business continuity. In this article, we explain our approach to credit risk management for corporates.

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RAROS: the dynamic tool that boosts shareholder value

In this article, Job Wolters looks at how companies can gain detailed insight into the risk-adjusted profitability of individual projects and transactions, and explains how the Risk Adjusted Return On Sales (RAROS) concept can benefit your bottom line.

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