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However, the reality is that you have to deal with all the "times" of a business in this matter. Therefore, it is interesting to understand what short-term financial management is and cultivate best practices.
The truth is, you are inevitably dealing with this issue daily. The benefit of naming and understanding what it lies in is optimizing it since short-term financial management is an important element for a company's success.
In short-term planning, the management of assets and compliance with the company's financial commitments are carried out.
Bankruptcy is one of the most feared ends for businesses. However, especially in contexts of crisis and unforeseen events, this situation can seem to knock at the door. Avoiding it, however, is possible through a series of measures, among which the management of financial risks is one of the most important.
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Based on this management, it is possible to prevent financial problems, which may lead to the company's bankruptcy, and understand the level of acceptance of certain risks to foster the growth and success of the business.
In a negative context, in which the enterprise is already concerned about bankruptcy, certain risks are common. They need to be corrected to favor the business, such as indebtedness, investments with a high level of uncertainty, low quality of information for decision-making, among others.
Such misunderstandings signal inadequate management of finances, which cause damage to the business and make it vulnerable. Therefore, it should be kept in mind that financial risk management is one of the aspects of financial management to be worked on, but not the only one.
This management action, in particular, must consider the different types of risks to which a business is exposed, which are:
- Credit risk
- market risk
- liquidity risk
- operational risk
- interest rate risk
- Cambial risk
Now that you know about short term management, and it's a risk, don't stop investing.
As with everything in life, balance is essential to have a better quality of life in the future and to fulfil your dreams.