Financial Risk Management:: Dr. Duke Ghosh, 2018
Financial Risk Management:: Dr. Duke Ghosh, 2018
Financial Risk Management:: Dr. Duke Ghosh, 2018
INTRODUCTION
Dr. Duke Ghosh, 2018
Indian Exports: Regime Change
• Post-Independent India
• Planned Economy – Socialist perspective
• Principle of self reliance
• Import substitution
• Exportable surplus
50000
0
100000
150000
200000
250000
300000
350000
1948
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
Exports by India
1986
1988
1990
1992
1994
Export Performance: India
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Risk
• A risk is a potential problem – it might happen and it might
not
Country Risk
Political stability, Credit Risk Currency Risk
policies, legal systems, Non payment, late Volatility in exchange
economic conditions, payment, fraud rates
cultural environment
Other Risks
Logistics Risk Documentation,
Theft, loss, damage administration,
protection of IPR, etc.
Proactive vs. Reactive Risk Management
• Reactive risk strategies
• "Don't worry, I'll think of something"
• Nothing is done about risks until something goes wrong
• The management then flies into action in an attempt to correct the
problem rapidly (fire fighting)
• Crisis management is the choice of management techniques
Revisit Risk
Sources Exposure Avoidance Management
Plan
Prioritization Shifting
Sharing
CAN RISK BE MADE ZERO?
Your Take!