Financial Risk Management Assignment example
Undergraduate
Assignment
Finance & Accounting
Pages 6 (1506 words)
Download 0
FINANCIAL RISK MANAGEMENT By NAME Presented to INSTITUTION PROFESSOR COURSE FINANCIAL RISK MANAGEMENT 1. Types of risks faced by a firm? There are numerous types of varying risks and a number of these types are comparatively or less comparatively significant in varying situations and applications (Allen, 2003, p…

Introduction

141). In this paper, Deutsche Bank, AG will be the organization that will be analyzed for its risk management and risk types it confronts. The types of risks that Deutsche Bank faces include: Credit risk: Credit risks come up from all dealings where concrete, conditional or possible claims in opposition to any counterparty, debtor or obligor. Deutsche Bank jointly refers to these parties as counterparties, as well as those claims that the bank plans to allocate (Deutsche Bank, 2011, p. 13). The dealings done on this risk are normally part of our conventional non-traded loaning operations like advances and provisional liabilities, or the direct exchange activity with clients like OTC byproducts, FX advances and forward rate agreements. Market risk: Market risk can be described as the likelihood for adjustment in the market worth of the bank’s exchange and investing positions Deutsche Bank, 2011, p. 14). Risk could come up from contrary alterations in interest rates, credit spreads, foreign exchange tolls, equity costs, prices of goods and other pertinent parameters like market instability and market indirect default possibilities. The bank distinguishes amid three considerably dissimilar sorts of market risks. ...
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,…
Financial Risk Management
At the business level, managers use VaR as a standard summery of market risk exposure. A benefit of the VaR which is a, the great value theory, is that it may be computed without full information of the return allocation. Semi or fully non-parametric estimation processes are obtainable for downside risk estimation. Additionally, at an adequately low confidence level the VaR calculate explicitly…
The association between the derivatives products and the financial risk management is quite substantial and significant
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…
Financial Risk Management
This study involves a comprehensive study of the risk management policies followed by Bear Stearns and how it led to its demise. Risk Management: An Overview Risk is a term associated with any type of business entity. Without risk it would have been an easy task for managers of a company to allocate its resources in the most effective way. And with the world experiencing the global financial…
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…
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)…
Financial Risk Management
The banking and financial institutions of a country are responsible for the development and progress of different sectors in the economy. They mobilize household savings and lend it to the potential investors in a country. Investments made in the business corporations help them to expand and generate more employment opportunities in a country. Thus, financial institutions and banks play a pivotal…