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Foreign Exchange Risk Management
The peculiarities of foreign exchange markets are
– An Over The Counter market
– Only market open 24 hours, seven days a week, 365 days a year
– No single location; no barriers
– ...
Trends in Risk and Margin
Any activity is associated with risk – a loss or gain. Financial risk management is not about avoiding risk. Rather, it is about understanding and communicating risk, so that risk can be taken more confidently and in a better way. (David Koenig,...
Principles for sound stress testing practices in banks
According to Bank for International Settlements, stress testing is an important risk management tool that is used by banks as part of their internal risk management exercise. It is especially important after long periods of benign economic and...
Risks associated with investments
In any investment, an investor is exposed to several kinds of risks. The risks associated with investments are liquidity risk, market risk, credit risk, operational risk, prepayment risk and extension risk. If the investor decides to go in for...
Risks in international trade
As a practitioner, I have encountered many risks while handling international trade in different locations (domestic and foreign included). I was amazed and at the same time swayed by these risks in international trade. I have meticulously documented...
Stress testing on banks
Stress testing is the topic of the day.
This blog makes an attempt to demystify the topic stress testing.
A banking organization holds capital to guard against uncertainty. Capital reassures an institution’s depositors, creditors and counterparties‐‐and...
Country Risk is an Evolving and Dynamic Risk
Country risk analysis, as it is practiced is far from perfect. For example, the country risk of the United States fails to properly take into account the country’s aging population and strained Social Security system — as well as its huge...
Cool Times in risk management?
Introduction Any activity is associated with risk – a loss or gain. Financial risk management is not about avoiding risk. Rather, it is about understanding and communicating risk, so that risk can be taken more confidently and in a better...
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