Creating a risk management policy

Article Abstract:

Firms turn to derivatives for hedging interest-rate exposures and equity risks, lessening adverse currency and commodity price moves, enhancing yields and changing of portfolio allocation. However, risk management policies that outline when and how much to buy, as well as the related reporting and approval procedures, must be in place as protection against derivatives disasters. While too-stringent policies may limit a treasurer's capacity to intervene, more subjective policies may not define the proper boundaries that will curtail speculative activities.

Derivatives (Financial instruments)

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Innovative risk-transfer packages aren't making the cut

Article Abstract:

Companies have determined that integrated risk-transfer packages are not cost-effective and are more expensive than hedging in financial and insurable risks using standard tactics. In addition, many financial executives have found that integrated risk is faulty and irrelevant. Although integrated risk is intended to protect against financial risks, changes in currency and interest rates, many have declined taking on such packages since better, cheaper deals can be made by buying individual policies.

Financial management

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Viewing the opportunity in risk

Article Abstract:

The risk-management strategies of Enron Corp, an energy business based in Houston, TX, are described, with focus on the high risk element of the company, and the way in which the chief risk officer, Rick Buy, uses it to generate profits.

Usage, Risk assessment, Enron Corp., ENE

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