Financial Risk Management
The objective of this project is to give the students an opportunity for reflection and appreciation of the extent of their learning by synthesizing and integrating various themes encountered throughout the term, in both a qualitative and quantitative way.
PROJECT DESCRIPTION:
Currency volatility is in the forefront of issues concerning companies around the world, and hedging has increased after a pullback during the 2008 financial crisis. How much a company uses hedging depends on the type of business and how predictable its foreign-exchange exposures are. Most sectors that do business abroad typically try to eliminate half of their exposure. Find a global company of your choice that utilizes various derivative instruments to protect itself from foreign exchange risk. Describe the type and nature of risks it faces and the effects on its overall profits. Critically analyse how the company implements its hedging strategies by discussing in details the various tools used. Recommend different hedging strategies that your company can use but it might not.
STRUCTURE AND FORMAT OF THE PROJECT:
1. The report should display a coherent structure: Title page should include the student’s name, module name, lecturer name, date and school name followed by contents page, introduction, executive summary, methodology, findings, analysis, conclusions, recommendations, referencing and appendices.
2. The project should be prepared as a neatly typed Word document (Times New Roman 12 points), with double spacing and page numbering. Bruno Bochicchio The written projects are expected to consist of approximately 2500 words +/-10% (not counting tables or inserts, introduction and conclusions).
3. Tables or work/data taken from other sources may be included in an appendix.
4. All sources must be referenced in the text and a full bibliography must be provided (including visited websites) in the Harvard style referencing system. Paraphrasing or direct quotes taken from other sources must be clearly indicated with citations. No footnoting!
5. Students are reminded that depth, relevance and variety are the crucial elements of quality research. (Wikipedia is not considered to be a relevant source of information, any students referencing Wikipedia will be deducted marks! Alternatively, if you find information on Wikipedia use the original sources listed at the bottom of the article)
