Corporate Risk Management with the help of Futures and Options
Corporate Risk Management, Futures and Options, Derivatives, risk exposure
Derivatives have increased in popularity since their introduction because they allow the creation of new investment products and the management of risk at a lower cost. Derivatives may also be used to mitigate potential risk. Risk management can be done using derivatives instruments by the corporates and banking institutions. Risk management process is an iterative process that helps companies and banking institutions reduce the chances and effects of adverse events while enhancing the realisation of opportunities. This process includes mainly five steps: setting objectives, detecting and identifying events, assessing and prioritising risks, selecting a risk response, and controlling and monitoring activities. Hence, the present study is an attempt to know the risk management process, strategies and techniques of corporates and banking institutions and to determine that investors decisions of investing in derivative market can affect corporate risk management or not. The study finds that firms utilise derivative products for a variety of reasons, including reducing financial restraints and alleviating the company's financial suffering. It has been noticed that while derivatives can reduce risk, they don't necessarily result in higher earnings.
"Corporate Risk Management with the help of Futures and Options", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.6, Issue 5, page no.333 - 352, May-2021, Available :https://ijsdr.org/papers/IJSDR2105054.pdf
Volume 6
Issue 5,
May-2021
Pages : 333 - 352
Paper Reg. ID: IJSDR_193343
Published Paper Id: IJSDR2105054
Downloads: 000347173
Research Area: Management
Country: Nagpur, Maharashtra, India
ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: IJSDR(IJ Publication) Janvi Wave
