Financial Risk Management Calculations

QFINANCE Revised 2nd edition. Order your copy now.

Dangers of Corporate Derivative Transactions

Derivatives, such as interest rate hedging, are highly effective tools when used correctly but, as the recent crash showed, they can also be "weapons of financial mass destruction."
Hedging Liquidity Risk—Case Study and Strategies

This article examines the definition of liquidity risk and ways of hedging against it.
Hedging Credit Risk—Case Studies and Strategies

This article examines credit risk and the instruments that may be used as hedges to reduce exposure.
A Total Balance Sheet Approach to Financial Risk

Company boards have a duty to minimize known risks and "hedging" out inflation, interest rate, and currency risks are common practice. There is more to consider, however.
Managing Interest Rate Risk

Volatility in interest rates can reduce the profit on a deal or turn it negative. Managing the risk means moving it to someone else better placed to take it on. It's a cost versus risk balance.

QFINANCE Refresher

Calculations

Calculations and Ratios presents the essential mathematical tools the finance professional needs for finding solutions to daily numerical problems. This section includes how to calculate return on investment, return on shareholders' equity, working capital productivity, EVA, risk-adjusted rate of return, CAPM, and many more.

Exchange Rate Risk
The risk of a gain or loss in the value of a business activity or investment that results from changes in the exchange rates of world currencies.

New opinions are always suspected, and usually opposed, without any other reason but because they are not already common.
John Locke (1632–1704), English philosopher and political thinker
Source: An Essay Concerning Human Understanding (1690), Dedicatory epistle

Financial Risk Management Calculations

Topic Highlights

Dangers of Corporate Derivative Transactions

Hedging Liquidity Risk—Case Study and Strategies

Hedging Credit Risk—Case Studies and Strategies

A Total Balance Sheet Approach to Financial Risk

Managing Interest Rate Risk

QFINANCE Refresher

Calculations

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