The financial crisis destroyed long-cherished notions of risk and how to manage it. In its wake, CFOs and Treasurers face a world where constants are no longer sure to hold, markets can no longer be certain to price and no position is risk free.
As a result, corporations around the world increasingly recognise the value in paying even more attention to managing financial risks. Deciding to hedge may seem a logical way to do this.
But how exactly do you hedge financial risks? How should your debt be structured? How do you determine which risks to hedge first, and which ones (if any) should be left unhedged?
With the scrutiny of risk management and market uncertainty at all-time highs, The Handbook of Corporate Financial Risk Management, written by Stanley Myint and Fabrice Famery of BNP Paribas, addresses these very real problems, providing a detailed guide to the financial risks faced by corporates, and how to manage them.
The book contains a unique set of case studies drawing on real-life industry experience and is organised around the challenges treasurers and treasuries face every day:
• Interest rate and inflation risks
• Currency risk
• Credit risk
• M&A related risks
• Commodity risk
This book is an essential resource for all risk management professionals and practitioners - treasurers, CFOs, CROs, CEOs, FDs, traders; accountants, consultants; corporate bankers, coverage officers, corporate financiers, private equity investors; academics and students in the field of corporate risk management.
- Book 9781906348922 / EBook 9781782720034
- Publish date
- 30 Oct 2012
- 155mm x 235mm
Table of contents
Foreword by Pascal Quiry
Section 1: Funding
Chapter 1: How to Obtain a Credit Rating
Chapter 2: The Intermediated Exchange
Chapter 3: Cash Tender Offer
Chapter 4: Optimal Debt Duration via Merton’s Model
Chapter 5: Funding Cost Drivers
Section 2: Interest Rate and Inflation Risks
Chapter 6: How to Develop an Interest Rate Hedging Policy
Chapter 7: How to Improve Your Fixed-Floating Mix and Duration
Chapter 8: Impact of Fixed-Floating Policy on Company Valuation
Chapter 9: Do You Need Inflation-Linked Debt?
Chapter 10: Prehedging Interest Rate Risk
Chapter 11: When to Prehedge
Chapter 12: Constrained Maturity Optimisation
Chapter 13: Asset and Liability Management
Chapter 14: Pension Fund Asset and Liability Management
Section 3: Currency Risk
Chapter 15: How to Develop a Foreign Exchange Policy
Chapter 16: Netting Foreign Exchange Risks
Chapter 17: Managing the Risk from Emerging Market Currencies
Chapter 18: Currency risk on Covenants
Chapter 19: How to Manage Translation Risk
Chapter 20: Managing Foreign Exchange Risk with a Dynamic Options Strategy
Section 4: Credit Risk
Chapter 21: Counterparty Risk Methodology
Chapter 22: Counterparty Risk Protection
Chapter 23: Optimal Deposit Composition
Chapter 24: Prehedging Credit Risk
Section 5: M&A-Related Risks
Chapter 25: Rating Impact of the Acquisition
Chapter 26: Risk Management for M&A
Chapter 27: Amendments to Bond Documentation
Chapter 28: Monetising Deferred Consideration
Chapter 29: Hedging Uncertain Exposures
Section 6: Commodity Risk
Chapter 30: Managing Commodity-Linked Revenues and Currency Risk
Chapter 31: Managing Commodity-Linked Costs and Currency Risk
"As a newly minted CFO this book, packed with real life business cases, has been instrumental in forming my views and action plan to address the Group’s corporate risk. Highly recommended, if not a must, read for students and business professionals alike."
Eric Hageman, Chief Financial Officer, KPN Royal Dutch Telecom
"This unique book provides a comprehensive overview of corporate risk management topics and will prove to be very useful to Treasurers and Financial Directors in their daily activities"
Alessandro Canta, Head of Group Finance, ENEL
"This Handbook is rigorous, clear, and ruthlessly practical. Up-to-date examples are drawn from the authors' first-hand experience of meeting their own clients' complex needs. I can see this becoming required reading for anyone involved in managing corporate finance risk, and a key reference in the field."
Dr. Howard Jones, Senior Research Fellow in Finance, Saïd Business School, Oxford University
"This topical book could not have come at a better moment. It illustrates the power of a systematic, quantitative and analytical approach to Financial Risk, which is even more important in these turbulent times."
Thomas Bartelt, Head of Financial Risk Controlling, Volkswagen
"I will use and I will recommend (this) book to the MBA students and to the participants of the executive programs in which I am teaching. It is a very unique mix of theory and practice and I am really convinced it will be of great help to everybody having to deal with financial risk management."
Marc Bertoneche, Visiting Professor of Finance, Harvard Business school
The book was selected to make master students aware of Corporate Financial Risk. The book is build up in a structured and consistent way, to make the drivers of the financial risk obvious, which are explained by using practical examples, finalized by a conclusion and recommendation relative to the financial risk subjects. The future decision makers will understand the financial risk elements after reading and discussing and will use the knowledge to make strategic decisions for their companies. The content of the book is very useful for Finance and Business Administrative Master Students.