MANAGING RISK IN INTERNATIONAL BUSINESS

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

Course Outcomes (Cos):

 

Course Outcomes

Learning and teaching strategies

Assessment Strategies

 
 

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

 

CO 163: Explain and identify the different types of risks involved in International Business

 

CO 164: Understand and apply various measures of Risks

 

CO 165: Understand the concept of Risk Diversification and management through different portfolio models

 

CO 166: Apply the process of Risk Management in International Business

 

CO 167: Comprehend and apply the hedging techniques for managing foreign exchange

CO 168:  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
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.pdfdrive.com/international-marketing-e33406695.html

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

ACADEMIC YEAR: 
2022-2023
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