To study the financial risks of telecom industries, we will also introduce information regarding telecom sectors from countries such as India, China, and Philippines and so on to give an enhanced overview of existing practices. In this dissertation proposal, we will adequately sum up the reasons for this research, why it is significant, what methodology needs to be adopted, how information will be obtained and so on.
As mentioned in the abstract, the purpose of this dissertation proposal is to study financial risk management in the existing telecom industry. Today, telecommunication is widespread and devices such as telephones, radios, internet, instant messaging and so on facilitate the process of communication. By definition, financial risk management means the process of identifying, evaluating and reducing financial risks.
The telecommunication industry suffers from a number of problems such as market saturation2, financial recession, growing consumer prospects and so on. ...
Moreover, certain external factors such as natural disasters and terrorist attacks, cross-border transactions, development of new markets and so on have added to the existing risks in the telecommunication industry paving the way for greater financial risk management.
To gain a better perspective of financial risk management, let us consider some theories. Financial risk management3 becomes essential when an organisation desires an increase in its shareholders value by taking on a viable project. However, organisations alone, cannot hedge a risk correctly when the cost of the services or product is similar in the existing market and the market where the organisation desires expansion. For this purpose, these organisations require outside help in terms of financial risk management.
Derivatives4 are commonly used in financial risk management as tools through which specific risks can be gauged effectively and accurately. Some of these derivativesi include swaps or forward contracts that tend to be costly; while others include trade on future exchanges that tend to be cost efficient but leave certain risks.
As stated earlier, the purpose of this dissertation proposal is to study financial risk management in the existing telecom industry.
In order to complete an efficient study of the project, the research will comprise of the following stages; a detailed literary search, anthology of a bibliography, drafting the literary review, designing the research instrument, revising, planning and organising the research, making a glossary of the bibliography, scheduling, conducting a research, collating and analysing the data generated by different agencies on a regular basis, writing the results and analysis, writing the full draft,