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Political risk arising out of political scenario – a discussion
This unit will make an attempt to bring out the salient features of political risk arising out of political scenario in financial market place.
Financial markets are the backbone of any economy, be it developed, undeveloped or underdeveloped....
Country Risk analysis
Attention of readers is invited to our earlier post on country risk with the title Country Risk is an Evolving and Dynamic Risk.
As we are aware, country risk is the risk that a foreign government will default on its bonds or other financial...
COOL TIMES in Risk Management Revisited
Some time back, I shared some thoughts on various risks faced by banks. For easy remembering
and recall, I also coined COOL TIMES.
The subsequent developments in the market place, particularly in the regulatory space, made
me to rethink and...
Systemic risks and Investment Banking
In financial markets, the systemic risk is the risk of failure or collapse of the entire financial markets as opposed to the risk associated with any one of the asset classes, individual financial institution or group.
It can be...
Interest Rate Derivatives and their wrong sales to gullible customers
Banks are more in the news these days – for a variety of reasons with negative impact of course. Of all these, the one connected with mis-selling of interest rate derivative products is causing considerable damage.
The kind of allegations...
An analysis of sovereign risk
These days our governments are more in the business of business than governance. Naturally, when they approach markets for funds – through issue of bonds, debentures, stocks and securities, treasury bills and bonds – the investors will need...
Principles of risk management
Introduction
Any activity is associated with risk – a loss or gain.
More so, in trade and commerce, due to complex nature of transactions and the individual characteristics of the players, commodity, practices, customs, currencies.
Like in...
A treatise on risk basics
What is risk?
Risk are of three types: Known—a risk that is recognized by all, Unknown—a risk that is known by at least one person but is not known to many and Unknowable—a risk that is totally unexpected and impossible to foresee
Examples
Known—...
Counterparty risk management needs a closer relook
Counterparty risk is the risk that a counterparty in a transaction will default prior to the expiration of the contract and will be unable to make agreed contractual payments
Experience has shown, normally banking and financial crises have their...
Foreign Exchange Exposures
Foreign Exchange exposure is a measure of the potential for a firm’s profitability, net cash flow and market value to change because of a change in exchange rates. An important task of the financial manager is to measure foreign exchange exposure...
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