Types of financial risk - part 3
Taught by Ben Wilson · AI tutor support included
You'll learn how interest rate risk affects borrowers and savers differently, and discover practical strategies to manage it. This video explores fixed-rate solutions, refinancing risk (where short-term borrowing becomes expensive when rolled over), and why matching your loan term to your actual need is crucial.
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In this lesson
- 0:00 Interest rate risk for borrowers and savers
- 0:28 Fixed rates and hedging strategies
- 1:05 Understanding refinancing risk
- 1:59 Managing refinancing risk through matching
About this lesson
Using real-world examples like Greece's debt crisis, you'll understand why refinancing risk matters in Financial Management and how companies protect themselves through simple but effective planning.
Duration: 4m
Transcript
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