Derivatives and Risk Management (PowerPoint PPT)

BENEFITS OF DOCUMENT

1. Provides of How can risk management increase the value of a corporation?
2. Provides of Financial Risk Management Concepts
3. Provides of How can diversification reduce business risk?

DESCRIPTION

This product (Derivatives and Risk Management) is a 29-slide PPT PowerPoint presentation (PPT), which you can download immediately upon purchase.

Derivatives and Risk Management

Lecture Outline
1. Do stockholders care about volatile cash flows?
2. How can risk management increase the value of a corporation?
3. What is corporate risk management?
4. Definitions of Different Types of Risk
5. What are the three steps of corporate risk management?
6. What are some actions that companies can take to minimize or reduce risk exposures?
7. What is a financial risk exposure?
8. Financial Risk Management Concepts
9. How can commodity futures markets be used to reduce input price risk?
10. Insurance and Bond Portfolio Risk Management
11. How are risk exposures identified and measured?
12. What actions can companies take to reduce property and liability exposures?
13. How can diversification reduce business risk?
14. What is a financial risk exposure?

The term derivative refers to a type of financial contract whose value is dependent on an underlying asset, group of assets, or benchmark. A derivative is set between two or more parties that can trade on an exchange or over-the-counter (OTC). These contracts can be used to trade any number of assets and carry their own risks. Prices for derivatives derive from fluctuations in the underlying asset. These financial securities are commonly used to access certain markets and may be traded to hedge against risk.

Source: Best Practices in Risk Management, Financial Risk PowerPoint Slides: Derivatives and Risk Management PowerPoint (PPT) Presentation, UJ Consulting