I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.
DECLARATION
I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.
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ABSTRACT
In this study we try to explore the concept of risk management in a holistic context. The main focus of the research is on financial risk management and its relation with the business sector. The research also analyzes many aspects of risk management and tries to gauge its effect on business decisions. Finally the research describes various factors which are responsible for risk management and tries to describe the overall effect of the method of financial risk management on the business.
Table of Contents
ACKNOWLEDGEMENTII
DECLARATIONIII
ABSTRACTIV
CHAPTER 1: INTRODUCTION1
Background of the study1
Research Aims and Objectives1
Ethical Considerations1
CHAPTER 2: LITERATURE REVIEW3
Background of Financial Management3
Risk Management6
Commodity Risk Management8
Capital Management and its main components9
Capital Budgeting13
Study Motivation and Original Contribution14
Deterministic vs. Stochastic Capital Structure15
Deterministic Capital Structure Optimization16
CHAPTER 3: METHODOLOGY17
Introduction17
Philosophical Framework or Paradigm18
Rationale for a Qualitative Study19
CHAPTER 4: DISCUSSION21
Methods of Financial Risk Management21
CHAPTER 5: MODELS OF CALCULATING RISK MANAGEMENT27
Risk Measurement27
Extreme Value Theory Approach:31
Parametric Approach:34
GST and Stable Distribution35
Generalized Skewed t Distribution36
Stable Distribution38
Copula Function43
CHAPTER 06: CONCLUSION47
Controlling Risk Management47
The Role of Good Management48
Staff as an Area of Risk49
Risks from “Others Who Receive Services”49
Protecting Assets and Resources50
Financing Risk50
Evaluation51
REFERENCES52
CHAPTER 1: INTRODUCTION
Background of the study
Risk management is a core activity by financial institutions. There are different types of financial risks, e.g. market risk, credit risk, operational risk, modelling risk, liquidity risk, business risk, etc. Managing these risks to minimize potential losses is essential to ensure viability and good reputations for financial institutions. Therefore, it is necessary to have an accurate model and a proper measurement that describes the risks. Infrastructure project expenditures in the world economy have been growing substantially in the last two decades (Koven 2003, pp.1). Public owners of infrastructure projects, who have originally shouldered the burden of infrastructure finance through a variety of public-financing structures, must face the daunting challenge of balancing the huge spending demand with a constrained budget. Therefore, governments around the world are looking for economically efficient and creative alternative ways to deliver infrastructures.
Research Aims and Objectives
The aims and objectives of the research are as follows:
To find the methods of financial risk management
To assess the importance of financial risk management in business
Ethical Considerations
In addition to obtaining a signed consent form prior to conducting the interview, the researcher would take steps to make sure that “genuine informed consent” (Suzuki et al., 2007) has been granted by the interviewee. To accomplish this objective, information regarding the nature of the study would be presented prior to conducting the interview. Additionally, the interviewee would be informed that a debriefing session would be held at the end of the interview to allow the participant ...