Interconnections in Law, Accounting and Tax
Edited by Marijn van Daelen and Christoph Van der Elst
Christoph Van der Elst and Filip Bogaert INTRODUCTION Risk management is high on the agenda of all companies in the financial industry and even of many businesses. The financial crisis requires companies to develop policies assessing risk and providing reasonable responses to changing circumstances in a timely manner. The crisis illustrates that these strategies are distinguishing factors in whether a (financial) company survives or not. As individual chapters in this book illustrate, risk management is embedded in different fields of research. This is logical, as it is related to doing business. Running a business implies taking risks. As long as businesses exist they are confronted with risk. This also applies to the financial industry. Although financial transactions have taken place for thousands of years, in the Western world it was not until during the Middle Ages that the need was felt to transfer large sums of money, in particular to finance the crusades. At medieval trade fairs money-changers issued documents that were redeemable at other fairs. These documents developed into bills of exchange. With the acceptance of endorsement of bills of exchange the documents were easier to trade. Specific institutions were needed to accept these endorsed bills of exchange. The documents decreased the need to hire armed guards and mitigated the risks of robbery. It required money to be kept in custody and supplying money in another place. Often goldsmiths kept such valuables as gold coins but also jewels in strongboxes. The goldsmiths could even charge people for keeping those...
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