Managing Risk in International Business

Paper Code: 
MIB 422
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to -

  1. The course aims to develop students’ ability to identify, assess and manage the risks that are inherent in international business transactions.

Course Outcomes (COs):

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

PAPER CODE

Paper Title

MIB 422

Managing Risk in International Business

CO 136: Explain and identify the different types of risks involved in International Business

CO 137: Understand and apply various measures of Risks

CO 138: Understand the concept of Risk Diversification and management through different portfolio models

CO 139: Apply the process of Risk Management in International Business

CO 140: Comprehend and apply the hedging techniques for managing foreign exchange and interest rate risk & other risks involved in international trade

Approach in teaching:

Interactive Hours 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
Unit I: 
Unit 1

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: 
Unit 2

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

12.00
Unit III: 
Unit 3

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: 
Unit 4

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

12.00
Unit V: 
Unit 5

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

*Case studies related to entire topics are to be taught.

 

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
  • 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.

 

ACADEMIC YEAR: 
2020-2021
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