December 2017
Intermediate to advanced
1024 pages
32h 22m
English
Forbidden, but useful, tools …
The graph below illustrates the high volatility of some parameters of importance for the profit and loss account of companies: exchange rate (dollar/euro), interest rate (Eonia), raw materials (copper) and services (freight rates).
Source: Factset – copper spot price in $ per MT: London Metal Exchange – Fret price: Baltic Dry Index
Accordingly, investors, supervisory authorities and managers pay more and more attention to risk management. This has led to:
The evolution of risk management in recent years has consisted in increasingly segmenting risks and developing products that offer more accurate and flexible hedging for risk that in the past had not always been well assessed.