MANAGING RISK IN INTERNATIONAL BUSINESS

Paper Code: 
MIB 423
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

 
 

On completion of this course, the students will be able to:

 

CO 1. Explain and identify the different types of risks involved in International Business

CO 2. Understand and apply various measures of Risks

CO 3. Understand the concept of Risk Diversification and management through different portfolio models

CO 4. Apply the process of Risk Management in International Business

CO 5. Comprehend and apply the hedging techniques for managing foreign exchange

CO 6.  understand the concept of risk assessment

Approach in teaching:

Interactive Lectures using whiteboards, Discussion, Tutorials, Reading assignments, Demonstration, Team teaching, Quiz.

 

Learning activities for the students:

Self learning assignments, Effective questions, Solving problems of unsolved questions, Problem based learning-cases, Group learning teamwork, Giving Tasks.

 

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

  
 

 

12.00

Risks in International Business and its Classification- Concept of Risk, Nature of Risk in International Business, Types of risks- political, Exchange risk, Credit Risk, Transport Risk, Market Risk and Cultural Risk.

12.00

Measure of Risk in International Business: Expected Return, Standard Deviation, Mean-Variance Analysis, Value at Risk (VaR)

12.00
Diversification and Risk: Techniques of Risk Management- Risk Reduction, Risk Control, Risk Avoidance, Risk Acceptance. Capital Asset Pricing Model, Arbitrage Pricing Models

 

12.00

Risk Assessment in International Business: Risk Identification, Develop Assessment Criteria, Measure risks, Assess Risk Interactions, Prioritize risks & Respond to Risks

12.00

Managing Risk in International Business : Hedging currency and interst rate risk, Export credit insurance, Structured trade finance, Political Risk Insurance

Essential Readings: 

ESSENTIAL READINGS:

  • Rene M. Stulz, Risk Management & Derivatives, Cengage Learning, India Edition
  • Kucuk Yilmaz, Ayse, Flouris, Triant G, Corporate Risk Management for International Business, Springer
  • Ephraim Clark, Bernard Marois, Managing Risk in International Business: Techniques and Applications, Better World Books- West

SUGGESTED READINGS:

  • John Hampton, Fundamentals of Enterprise Risk Management: How Top Companies Assess Risk, Manage Exposure, and Seize Opportunity, Amacom
  • Bhogal T.S., Trivedi A.K., International Trade and Inherent Risks. In: International Trade Finance. Finance and Capital Markets Series. Palgrave Macmillan
  • Paul Hopkins, Fundamentals of Risk Management, Kogan Page.

 

References: 

E-RESOURCES:

JOURNALS:

  • Global Business Review , http:// sagepub.com
  • Journal of Financial Risk
  • Foreign Trade Review, http:// sagepub.com

 

Academic Year: 
2023-2024
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