Study Notes: How Do Firms Manage Financial Risk?

Chapter 2, How Do Firms Manage Financial Risk? Study Notes contains 9 pages covering the following learning objectives:

* Compare different strategies a firm can use to manage its risk exposures and explain situations in which a firm would want to use each strategy.

* Explain the relationship between risk appetite and a firm’s risk management decisions.

* Evaluate some advantages and disadvantages of hedging risk exposures, and explain challenges that can arise when implementing a hedging strategy.

* Apply appropriate methods to hedge operational and financial risks, including pricing, foreign currency, and interest rate risk.

* Assess the impact of risk management tools and instruments, including risk limits and derivatives.

After reviewing the notes, you will be able to apply what you learned with practice questions.

No Sample Available

Shop Courses