Corporate Risk Management in an International Context Robert Uberman Expert in natural resources strategy, finance and R&D.

Slides:



Advertisements
Similar presentations
Croatian Trade Export Credit Insurance in support of
Advertisements

1 RISK MANAGEMENT IN INSURANCE Philippe Wautelet Ukrainian Insurance Forum, 3-4 June 2009.
CAPITAL MARKETS PRESENTED BY ANWAR MISBAH SOUBRA, Phd.
Chapter 6 Entrepreneurship and Business Planning.
BONJOUR! YVES DRIEUX CEO BNP PARIBAS POLAND Jeudi, 23 Janvier, 2003.
“This workforce solution was funded by a grant awarded under Workforce Innovation in Regional Economic Development (WIRED) as implemented by the U.S. Department.
Federal Financial Markets Service of Russia Russian financial market Federal Financial Markets Service of Russia Presentation by Dr. Vladimir Gusakov Deputy.
Introduction to Derivatives and Risk Management Corporate Finance Dr. A. DeMaskey.
Guaranteed Renewable Disability Insurance – A Developing Opportunity The Plus Group Live Audioconference August 18, 2010.
Financial Intermediaries Indirect Finance –An Institution stands between lender and borrower. Direct Finance –Borrowers and lenders deal directly with.
Chapter 15 International Business Finance Key sections –Factors affecting exchange rates –Nature of exchange risk and types –How control exchange risk?
1 How to Mitigate Risks When Doing Business in the United States May 20, 2009.
Motives and Functions of a Business
Chapter 15 International Business Finance Key sections –Factors affecting exchange rates –Nature of exchange risk and types –How control exchange risk?
Sales & Trading Training Summer Program Overview Summer Project UMBS Finance Club November 1, 2003.
> > > > The Financial System Chapter 17. Learning Goals Outline the structure and importance of the financial system. List the various types of securities.
1 Math 479/568 Casualty Actuarial Mathematics Fall 2014 University of Illinois at Urbana-Champaign Professor Rick Gorvett Session 3: Economics and Insurance.
CHAPTER 3 FINANCIAL SYSTEM 1 Zoubida SAMLAL - MBA, CFA Member, PHD candidate for HBS program.
PRICING ISSUES IN GROUP LIFE ASSURANCE By David Mureriwa 15 April 2015.
Creating Opportunities in a Challenging Environment Julio G
Rolling Up a Put Option as Prices Increase. Overview  Agricultural producers commonly use put options to protect themselves against price declines that.
Chapter 1 Corporate financial strategy: setting the context
Michal Bodlák. Definition  An investment bank is a financial institution that assists: individuals, corporations and governments companies involved in.
International Financial Markets Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall.
Is a Financial Institution controlled by the Italian Ministry for Economic Development, participated by leading Italian Banks and Confindustria – the.
MONDAY 13 FEBRUARY, 2012 CHAPTER 1: LARGE SCALE ORGANISATIONS IN CONTEXT.
The International Financial System
4-1 CHAPTER 2 The Financial Environment: Outlines Financial Markets Financial Institutions.
1 Chinese Taipei An Overview of SME Statistics in Chinese Taipei.
A Paradigm Shift Based on the paper: Credit & Surety Pricing and the Effects of Financial Market Convergence Casualty Actuarial Society Seminar on Ratemaking.
© 2005 Pearson Education Canada Inc. BZUPAGES.COM 1-1 Overview of Corporate Finance Hashim Ali Shah
SOURCES OF FINANCE FOR ECONOMIC GROWTH CREDIT FINANCING FOR THE PRIVATE SECTOR JUNE 8 TH 2010 Robert Wright.
Large-scale organisations in context VCE Business Management Unit 3.
Chapter Outline 9.1Principals of Business Valuation Valuation Formula Components of the Opportunity Cost of Capital Compensation for Risk 9.2Risk Management.
International Financial Markets. © Prentice Hall, 2006International Business 3e Chapter Chapter Preview Discuss the international capital market.
The Foreign Exchange Market & The Global Capital Market.
FINANCIAL experts INDUSTRY Some of our clients. Financial translation has become a necessary service, not just within the financial industry but also.
Preparing your Managed Services Business for Sale Robert J. Scott Managing Partnerwww.scottandscottllp.com Scott & Scott, LLP.
Risk Management – Dynamic hedging 21st Mar Schneider Electric 2 ●Risk management ●The optimal duration of cost planning ●Procurement objectives.
1 Chapter 2 The Domestic and International Finance Marketplace © 2001 South-Western College Publishing.
Chapter 9 International Financial Markets. © Prentice Hall, 2008International Business 4e Chapter Chapter Preview Discuss the international capital.
INTRODUCTION A process of implementing and managing financial control systems, collecting financial data, analyzing financial reports, and making sound.
Financial Markets & Institutions
Robert Uberman, Multinational Corporations (MNCs) 1.
Trade Credit Insurance Presentation 2015 Finance Ministers’ Process (FMP) Conference on Reforming the Asia-Pacific Financial Infrastructure Panel Discussion.
Adeyl Khan, Faculty, BBA, NSU Chapter 17. Adeyl Khan, Faculty, BBA, NSU The Financial System  The financial system is the process by which money flows.
Chapter 1 Finance and Business. Areas of Finance Business Finance – Decision making within a business setting Investments – Allocation of money to earn.
Chapter 26 Principles of Corporate Finance Tenth Edition Managing Risk Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies,
Financing the Risks of Natural Disasters World Bank Conference June 2003.
Mobilizing Market Based Repayable Finance Financing Water Companies.
Finance 590 Enterprise Risk Management Steve D’Arcy Department of Finance Lecture 6 Integrated ERM Risk Metrics and Industry Examples April 26, 2005.
International Financial Management Vicentiu Covrig 1 Globalization and the Multinational Firm Globalization and the Multinational Firm (chapter 1)
Chapter 13 Fundamentals of Corporate Finance International Financial Management Slides by Matthew Will McGraw Hill/Irwin Copyright © 2004 by The McGraw-Hill.
The Way into New Markets Key Partner of Czech Exporters and Their Customers Abroad.
Institutions & Derivative Instruments
Factoring Landscape – India
MGMT 452 Corporate Social Responsibility
Preparing Your Managed Services Business for Sale
MOVING BUSINESS FORWARD
Chapter 2 Learning Objectives
About us Established in 2001
India’s Export and Imports
Trade Credit Insurance and consumer credit
Lecture 2 Chapter 2 Outline The Financing Decision
Chapter 9 International Financial Markets
Describe how changing contextual forces in the global business environment impact the competitive position of a firm Understand the role that globalization,
Business Policy & Strategy
Corporate Social Responsibility
Hedging with T-bond Futures
Presentation transcript:

Corporate Risk Management in an International Context Robert Uberman Expert in natural resources strategy, finance and R&D

May., the 21st, 2015Robert Uberman for the University of Economics in Cracow seminar Agenda  Key differences in approach to risk analyses between financial and non-financial institutions  Financial instruments vs commodities and individualized products  Operational vs financial hedging 2

May, the 21st, 2015Robert Uberman for the University of Economics in Cracow seminar Key differences in approach to risk analyses between financial and non- financial institutions  Risks and opportunities are head and tail of the same coin: limiting or eliminating exposure to risks imply simultaneous limitation or elimination of the opportunity. Thus a company has to assume risks to access opportunities.  Operational risks are hard to understand and quantify by professionals outside industry therefore premiums charged by financial institutions are prohibitively high. Risk coverage in such areas effectively destroys shareholders value. 3

May, the 21st, 2015Robert Uberman for the University of Economics in Cracow seminar Financial instruments vs commodities and individualized products  Commodities are usually traded on some regulated markets  Commodities are usually produced with standardized processes  Both mentioned above are universal globally, if differentiated – based only on natural/geographical factors 4

May, the 21st, 2015Robert Uberman for the University of Economics in Cracow seminar Sources of operational risks  Clients  Suppliers  Employees  Stakeholders: – Environment (Union Carbon, BP) – Society – Politics 5

May, the 21st, 2015Robert Uberman for the University of Economics in Cracow seminar Clients based risks decomposed  Sales (volume, value, others)  Revenues collection  Claims (volume, value, quality)  Recommendations/reputation 6

May, the 21st, 2015Robert Uberman for the University of Economics in Cracow seminar Operational versus financial hedging 7 Non financial enterprises are primary exposed to operational risks, financial ones follow. Financial risks are easy insurable on financial markets and hardly pushed by financial institutions Most risk coverage products represent source of risk at the same time Companies are pressed to over insure financial risks and under insure operational ones

May, the 21st, 2015Robert Uberman for the University of Economics in Cracow seminar Operational and financial components of risk 8 Financial risk easy to cover Interaction risks ??? Operational risks covered via delivery guaranties and penalties A company entered an EURO 100 million investment contract, with payments due on 2015/10/17 (30% - prepayment), 2016/8/19 (60% - installation delivery) and 2016/10/03 (tests completion)

Thank you for your attention