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RIM D-14
Executive One-Year MBA (Part-time) 2014-15

Course Name: Risk Management

Credits4
Faculty NameProf. B.P.Mishra /Prof.Asit Mohanty
ProgramEX-MBA- Part Time ( One Year)
Academic Year and Term2014-15 batch
Term -3

1. Course Description: “Multinationality” is an important facet of modern business and it is important for managers to understand international financial development and acquire specific knowledge and skills to function in a multinational business environment. In this course we shall discuss about the foreign exchange market and instruments and determination of exchange-rates. The rates themselves are subject to change and it has profound effects on Sales, Costs, Profits, Assets & Liability Values and Individual wellbeing .Political barriers provide additional opportunities and risk when engaging in overseas borrowing and investment. Forex Risk management has the core focus in respect of the problems managers face from these currency risks and managing them for exploiting profitable business opportunities.

2. Student Learning Outcomes

· Be able to : have basic idea about foreign exchange market and determination of exchange rates

· Be able to ….have basic idea about different instruments in the forex market including foreign exchange derivatives

· Be able to … have an idea about how to use foreign exchange derivatives and other techniques to manage foreign exchange exposures/ risks .

· Be able to … appreciate the nuances of the International Capital budgeting decisions and funding rationale in respect of Risk management.

3. Readings and References

Text Book:

International Corporate Finance: Madura ( Tenth Edition), Cenage Learning

Further Readings:

A. Books :

The Economic Times , Financial Express , The Economist , Bloomberg ,The Wall Street Journal , The Financial Times

Pedagogy:Case discussion, Class Presentations, Quiz

4.
Sessission-1
Introduction to Exchange rates and the world of International Finance -
Relevant Chapters of above referred Book

And teaching notes

Session -2
Forex Risk – Analysis, source and Macro Policy framework
Case study
Session 3,4
Predicting Exchange rates, International parity Conditions.
Relevant Chapters of above referred Book
Sessions-5,6,
Forex Derivatives
do
Sessions -7,8,
Forex Exposure- measuring and managing the same
Case study
Session- 9
Exchange Rate Risk management-Corporate perseptive- (Use of Mifors, Miocs ,POS,COS etc)
Relevant Chapters

A.V.rajawade

Session-10
Indian Regulatory provisions for Forex risk management
A.V.Rajwade
Session 10 -12
    Liquidity Risk
    Relevant Chapter of the Recommended Text Book and Reference Materials
    Session 13 -15
      Interest Rate Risk
      Relevant Chapter of the Recommended Text Book and Reference Materials
      Session 16 -18
        Rating Models
        Relevant Chapter of the Recommended Text Book and Reference Materials
        Session 19-20
          Loss Measurement and Risk Mitigation
          Relevant Chapter of the Recommended Text Book and Reference Materials

          NOTE: - the minimum pass mark in the course is 30%.

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          Created By: Alora Kar on 11/12/2014 at 11:50 AM
          Category: EDIP14-T-III Doctype: Document

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