MANAGING RISK IN INTERNATIONAL BUSINESS

Paper Code: 
MIB423
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will equip students with essential knowledge and strategies to identify, measure, assess, and manage risks in international business environments effectively.

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

24MIB423

Managing Risk in International Business (Theory)

CO556: Identify the different types of risks involved in International Business

CO557: Apply various measures of Risks

CO558: Evaluate    Risk

Diversification and management through different portfolio models

CO559: Apply the process of Risk Management in International Business

CO560: Comprehend and apply the hedging techniques for managing foreign exchange

CO561: Contribute effectively in course-specific interaction

Approach in teaching:

Interactive Lectures, Group Discussion, Tutorials, Case Study

Learning activities for the students:

Self-learning assignments,

presentations

Class test, Semester end examinations, Quiz, Assignments, Presentation

 

12.00
Unit I: 
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
Unit II: 
Measure of Risk in International Business

Expected Return,
Standard Deviation, Mean-Variance Analysis, Value at Risk (VaR)

12.00
Unit III: 
Diversification and Risk

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

12.00
Unit IV: 
Risk Assessment in International Business

Risk Identification, Develop Assessment Criteria, Measure risks, Assess Risk Interactions, Prioritize risks & Respond to Risks

12.00
Unit V: 
Managing Risk in International Business

Hedging currency and interst rate risk, Export credit insurance, Structured trade finance,
Political Risk Insurance

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

References: 

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.

E-RESOURCES:

· https://www.oecd-ilibrary.org/economics

· https://www.risk.net/books

 

 

JOURNALS:

· Global Business Review , http:// sagepub.com

· Journal of Financial Risk

Foreign Trade Review, http:// sagepub.com

Academic Year: 
2024-2025
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