StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Dissertation example - The association between the derivatives products and the financial risk management is quite substantial and significant

Only on StudentShare
Finance & Accounting
Pages 41 (10291 words)
Contents Executive Summary 1 Problem Statement 2 Research aim and objective 2 Research Questions 3 Dissertation Layout 3 Chapter: 1 Introduction to risk management 3 Risk Management Process 4 A background to Global Financial Risk Exposure and Hedging 5 Chapter: 2 Interest Rate Swaps 8 Characteristics of Interest Rate Swaps 8 Application of interest Rate Swaps 8 Valuation of SWAPS 10 Chapter: 3 Literature Review and Methodology 11 Literature Review 11 Research Methods and Data Collection 14 Chapter: 3 Analysis of the research 16 Chapter: 4 Conclusion 21 References 22 Executive Summary Banks and financial institutions have played a significant role in integrating the different economics of the …

Extract of sample

In order to operate in an effective manner, the banks need to manage their assets and liabilities from the various risks prevailing in the economy, one of which is the interest rate risk. Interest rate risk is the risk to earnings or capital arising from movement of interest rates. The need to manage the interest rate risk is very crucial for any bank and it has generally been observed that the interest rate risk management form the integral part of the risk management policies of all major global banks. This dissertation analysis the effectiveness of “interest rate swaps” in managing the interest rate risk faced by the UK banks and also how these derivatives product improves financial outlook of these banks. For the purpose of conducting the study, a quantitative and qualitative analysis was conducted on a sample of 12 major UK based banks. ...
Download paper
Not exactly what you need?

Related papers

Financial Innovation & Risk Management
Goldman Sachs is one of the banks using risk management strategies that either eliminates or mitigates some risks. In other instances, Goldman Sachs management decides to shift the risks to other parties (Goldman Sachs, 2012). The risk management strategies comprise of liquidity risk management, operations risk management, credit risk management and market risk management that has over the years,…
12 pages (3012 words)
A critical study of credit risk management in the First Bank of Nigeria PLC
In designing the credit policies, due considerations are given to the commitment of the bank which involves: Creating, monitoring and managing credit risk in a way that complies with all the applicable laws and bank regulations (Basel III: A global regulatory framework for more resilient banks and banking systems, 2010) Identifying the credit risk in every investment, loan or in other activities…
18 pages (4518 words)
Corporate Financial Risk Management
Therefore, it is recommendable for the firm to hedge against price volatility by buying futures contract. Table of contents Introduction……………………………………………………………………………… 4 Designing of the hedging strategy…………………………………………………………4 An assessment of the impact of the above hedging…
3 pages (753 words)
derivatives as a way of mitigating financial risk
Certain creditor protection rules are extended to these derivatives and this helps to increase their security and reduce financial risks. The other side is that with excessive credit protection norms, capital markets will under price the credit risks. This means that risks that should be valued at say 100 Pounds will be considered to be worth only 80 Pounds. This increases systemic risks and helps…
8 pages (2008 words)
Use of Derivatives in Risk Management
Following are the major sorts of instruments applied by organizations to manage the financial risks associated with business activity. Futures and Options In this type of instrument, one individual or business signs a contract with another one to purchase the commodity on some future date with an agreed-upon price. However, in futures both of the parties have to go through with the contract while…
7 pages (1757 words)
Use of Derivatives in Risk Management
The global economic environment and the financial market have evolved drastically over the past decade. With the advent of information technology at a rapid pace, the financial markets of the world are now closely integrated. Due to this phenomenon of the world being a global village, a turbulence originated in a far distant financial market can have eventual consequences all across the globe.…
Financial Risk Management
Businesses in order to increase the return or to reduce the level of risk associated with product (financial product) are increasingly making use of financial derivates in the respective portfolios. Among the range of derivatives being used in market following few derivatives are most commonly used (Culp, 2011): Futures contracts ( facilitating transfer of asset on future date at an agreed price)…
4 pages (1004 words)