Risk Management Methods Iryna Nyenno, Doctor of Economics, Odessa I.I. Mechnikov National University. - презентация

1 Risk Management Methods Iryna Nyenno, Doctor of Economics, Odessa I.I. Mechnikov National University

2 risk avoidance (high probability and size of losses); risk acceptance (low probability and loss), self-insurance (homogeneous risks - low probability and loss); limiting; loss prevention; risk transfer: hedging; diversification; rent, in a row; insurance (high probability, small losses; low probability, large losses). Choosing Risk Management Techniques

3 refusal to carry out financial transactions, the level of risk for which is excessively high. rejection of the use of large amounts of borrowed capital. avoiding the overuse of current assets in low liquidity forms. the rejection of the use of temporarily free cash assets in short-term financial investments. Risk avoidance Choosing Risk Management Techniques

4 formation of the reserve (insurance) fund of the enterprise; the formation of targeted reserve funds. the formation of a system of insurance stocks of material and financial resources for individual elements of the current assets of the enterprise. creation of a captive insurance company; retained balance of profit received in the reporting period. Risk taking (self insurance) Choosing Risk Management Techniques

5 the maximum size (share) of borrowed funds used in economic activities. the minimum size (specific weight) of assets in highly liquid form. the maximum amount of commodity (commercial) or consumer credit provided to one buyer; the maximum amount of a deposit placed in one bank; the maximum amount of investment in securities of one issuer; maximum period of diversion of funds in receivables. Limiting Choosing Risk Management Techniques

6 Carrying out measures aimed at reducing the likelihood of an adverse event occurring; Carrying out measures aimed at reducing the amount of potential damage from an adverse event; Loss prevention and loss reduction Choosing Risk Management Techniques

7 Hedging using futures contracts. purchase (sale) of a real asset or securities with delivery in the future period (forward exchange transaction); sale (or, respectively, purchase) of futures contracts for a similar number of assets or securities (opening a position on futures contracts); liquidation of positions on futures contracts at the time of delivery of a real asset or securities by performing a reverse (offset) transaction with them. Hedging with options. Hedging using swap. Risk Transfer: Hedging Choosing Risk Management Techniques

8 diversification of financial activities. diversification of the currency portfolio ("currency basket") of the enterprise; diversification of the deposit portfolio. loan portfolio diversification. diversification of the securities portfolio. diversification of the real investment program. Risk transfer: diversification Choosing Risk Management Techniques

9 risk sharing among investment project participants. distribution of risk between the enterprise and suppliers of raw materials and materials. rent, contract of guarantee; insurance. Risk transfer Choosing Risk Management Techniques