Homespun remedies to earnings risk

Article Abstract:

The inadequacy of software systems to address the specific risk management needs of different firms has forced companies to devise their own systems such as Value-at-Risk methods. Firms such as Alcoa, which has needs specific to energy commodities, could not be accommodated by risk-management systems on the market which were designed with banking firms in mind. Alcoa's system utilizes the firm's intranet and allows managers to monitor commodity risk and status.

Software, Finance, Automobile industry, General Motors Corp., GM, Aluminum industry, AA, Alcoa Inc.

---

A bouquet of possibilities

Article Abstract:

Corporate treasurers have devised a number of financial management strategies in optimizing the value of their short-term investments. Wind River Systems, for instance, has decided to invest its short-term cash in high-quality commercial papers and money market funds to protect it from financial risks. Such a strategy has worked well for Wind River, which specializes in embedded operating systems.

Financial Management, Computer industry, Investments, Wind River Systems Inc., WIND

---

VAR's bean-counter dilemma

Article Abstract:

Value-at-risk (VAR) modelling technique being advocated by Securities and Exchange Commission and the Financial Accounting Standards Board may complicate the jobs of treasurers as it does not model risks correctly. VAR modelling is more of an analytical tool than a decision support system because of the asymmetric risk profile of corporate management and thus may be a pitfall for some treasurers.

Finance departments

Similar abstracts:

• Abstracts: The Fed's warning. The rule of 20. A questrion of degree
• Abstracts: The warrant supply dries up. All about equities. Warrant buyers: do you feel lucky?
• Abstracts: Advertising your site: real-world tales. Net marketing 200 best b-to-b web sites
• Abstracts: Duncan lauds teamwork. Dawson upends typical options
• Abstracts: Bosses are supposed to produce beans. Beware conventional measures of success. Bosses who just keep going

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.