TAILIEUCHUNG - Lecture Financial institutions, instruments and markets (7e): Chapter 18 – Viney, Phillips

Chapter 18 - An introduction to risk management and derivatives. In this chapter students will be able to: Understand the nature and importance of risk and risk management, especially operational and financial risk exposures; construct and analyse a structured risk management process; examine the fundamentals of futures contracts; review the operation of forward exchange contracts and forward rate agreements;. | Chapter 18 An introduction to risk management And derivatives Learning objectives Understand the nature and importance of risk and risk management, especially operational and financial risk exposures Construct and analyse a structured risk management process Examine the fundamentals of futures contracts Review the operation of forward exchange contracts and forward rate agreements Understand the nature and versatility of options contracts Consider the structure of an interest rate swap and a cross-currency swap Chapter organisation Understanding risk The risk management process Futures contracts Forward contracts Option contracts Swap contracts Summary Understanding risk Risk—the possibility or probability of something occurring that is unexpected or unanticipated Categories of risk Operational risk Financial risk (cont.) Understanding risk (cont.) Operational risk Exposure that may impact on the normal commercial functions of a business, affecting its operational and financial performance; .: technology property and equipment personnel competitors natural disasters government policy suppliers and outsourcing Can be managed through the use of real options (cont.) Understanding risk (cont.) Financial risk Exposures that result in unanticipated changes in projected cash flows or the structure and value of balance-sheet assets and liabilities; .: interest rate risk foreign exchange risk liquidity risk credit risk capital risk (cont.) Understanding risk (cont.) Financial risk (cont.) Relationships between risks can result in one risk impacting on another risk Direct risk—the initial risk event that impacts on the operational or financial position of an organisation Consequential risks—exposures that eventuate as a result of an initial direct risk event Chapter organisation Understanding risk The risk management process Futures contracts Forward contracts .

• Tài chính doanh nghiệp
• Financial institutions
• Financial Instruments
• Financial markets
• Financial system
• Futures market instruments
• Futures market participants
• Lecture Financial markets and institutions
• Financial institutions markets
• Risks at financial institutions
• Market risk
• Savings institutions
• Credit unions
• Commercial banks
• Financial statements
• Financial markets and institutions
• Interest rates change
• Financial institutions exist
• Central banking
• Capital markets
• Money markets
• Interest rate fundamentals
• Interest rates
• Security valuation
• Federal reserve system
• Monetary policy
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Derivative securities markets
• Futures markets
• Commercial bank liabilities
• Regulation of commercial banks
• Deposit guarantee funds
• Insurance companies
• Life insurance companies
• Securities firms
• Investment banks
• Mutual funds
• Hedge funds
• Pension funds
• Private pension funds
• Managing credit risk
• Balance sheet
• Managing liquidity risk
• Managing interest rate risk
• Insolvency risk
• Managing risk
• Loan sales
• Managing risk off the balance sheet