S/F/165. Financial Risk Management

The paper addresses the problem of financial risks that has escalated over the past three decades discussing the measures taken to establish international standards, identifying the risks associated with various types of capital and financial activity, and highlighting the significance of market discipline to support capital regulations. The features of the long-term capital management (LTCM) are described; the issues of risk management in Enron and Barings bank are considered.

C/F/298. Role of Exchange Traded Options in International Risk Management Practice

The paper examines the role of exchange traded options (ETO) in risk management defining the types of ETO, the premium for an equity option, option's time value, the features of ETO contracts, the risks associated with ETO, etc.

C/F/307. Perspective on risk-return relationship for equity investments

The paper defines the concepts of average return and risk on individual stock and portfolio of stock investments. Stock prices of two companies over a five years period are analyzed with stock return and risk calculated for individual stocks and different portfolio scenarios. An efficient frontier is drawn using the calculated risk-return profiles of different portfolios and a capital market line is determined for the portfolio of stocks.

C/F/263. Foreign Exchange Rate Risk Exposure

The paper discusses three specific issues related to foreign exchange exposure in international firms, i.e. the implications of sourcing raw materials from overseas while production is in the UK, the exposure to exchange rate risk of a UK firm opening a new plant in Japan or the US, and the implication of opening a new plant overseas simultaneously sourcing raw materials from outside the UK.

C/F/240. Theory of risk and insurance market

The paper examines the reasons why dividing risks into a large number of pools as well as putting a lot of risks into one pool causes problems to the insurers. It is explained why the price of the general insurance is volatile despite the demand for the stability of insurance.

C/F/215. Proposal. Reporting financial risk in insurance companies: UK and India

This paper develops a thesis proposal in order to evaluate the issues associated with the processes of reporting financial risks in insurance companies. It explores the aims and objectives, emerging from a brief literature review and develops a research methodological approach. It also refers to the expected outcomes of such a research.

S/F/123. Assessment of Elecdyne Wales's investment strategies

The paper reports on the investment strategies of Elecdyne Wales (EW), a spin-off from a Japanese telecommunications company, analysing their political risks, assessing their country risk and exchange rate exposure, and identifying the benefits of raising funds from Euromarkets rather than domestic markets. Theoretical approaches to financial and non-financial risks are critically reviewed highlighting their advantages and disadvantages.

S/F/128. Explain the terms information asymmetries, first time lending and repeat lending, and moral hazard. Secondly, discuss the following statement in the context of the two prescribed readings below: 'Lenders are wary of high-technology ventures because of their higher risk. Lenders can overcome this risk by developing close relationships with the business'

The paper analyses the concepts of the information asymmetry, repeat lending, moral hazard, etc. discussing the probability of negative returns from lending to firms in high technology industries, and reviewing academic approaches to business and agency risks.

S/F/127. Testing propositions involving information asymmetries is inherently difficult. Discuss in the light of the available evidence for the existence of adverse selection in insurance markets. Is it possible to distinguish between different equilibrium concepts?

The paper examines the concept of adverse selection in insurance markets looking at the causes and consequences of the information asymmetry, their outcomes in insurance markets, types of insurance contract, the concepts of equilibrium, etc.

Page 1>Page 2>Page 4>