This week’s topics
Global Financial Risk Profiling and Management Costs
- Transaction, translation, and economic foreign exchange exposures
- Sovereign and country credit risks
- Direct and indirect costs of hedging
- Friction costs in multinational liquidity management
- Foreign exchange risk management (1) Part 1 - ACCA (AFM) lectures
- CIMA P3 Foreign currency risk - transaction risks
- Credit Risk Analysis- I
What you will be able to do
- 5.3 Critically assess the costs involved in managing global risk.
- 6.2 Analyse global risks.
Activity
Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: critically assess the costs involved in managing global risk.
Study materials
Videos
- Foreign exchange risk management (1) Part 1 - ACCA (AFM) lectures · YouTube · OpenTuition · 38 min · for registered students
- CIMA P3 Foreign currency risk - transaction risks · YouTube · OpenTuition · 30 min · for registered students
- Session 5: Country and Company Risk Exposures & Implied ERP · YouTube · Aswath Damodaran · 84 min · for registered students
- Data Update 4 for 2020: Country Risk and Currency Questions · YouTube · Aswath Damodaran · 24 min · for registered students
Further resources
- Political Risk, Economic Risk, and Financial Risk · PDF · Reading, article · for registered students
- Principles of Finance 2e, ch. 20.3: Exchange rates and risk · PDF · OpenStax, textbook chapter; pp. 590–599 · for registered students
- Risk Management for Enterprises and Individuals, ch. 5: The Evolution of Risk Management: Enterprise Risk Management · PDF · Saylor Academy, textbook chapter; pp. 185–229 · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
