In the gaming industry there are many risks including credit risk, liquidity risk, currency risk and interest rate risk.
Credit Risk- Credit risk is decreased by re-evaluating the credit policy throughout the year.
Interest Rate Risk- Interest rate risk has been eliminated by the company fixing their interest rate so it stays the same regardless of interest rate rises.
Liquidity Risk- Liquidity risk is reduced by always maintaining the company has enough liquidity to cover their liabilities when they are due
Currency Risk- Currency risk is reduced by always monitoring the hedging of net assets denominated in a foreign currency
1. What is 'hedging assets'?
2. Does anyone else have similar risks? How does your company manage them?
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