Financial Risk Management( specifically Interest & Foreign Exchange Risk Management among UK multinationals corporations

Research Methods

if hedging is a successful startegy in dealing with the interest and foreign exchange risk for uk MULTINATIONAL CORPORATIONS

CONTENTS

TOC \o "1-3 " \h \z \u abstract : PAGEREF _Toc0 \h 2

1- introduction PAGEREF _Toc1 \h 2

2- Literature review PAGEREF _Toc2 \h 2

3- Reasons for Choosing this PAGEREF _Toc3 \h 4

4- Aim PAGEREF _Toc4 \h 5

5- Methodology PAGEREF _Toc5 \h 5

5-1- Philosophy PAGEREF _Toc6 \h 5

5-2- Qualitative versus Quantitative primary research PAGEREF _Toc7 \h 6

5-3- Interviewing PAGEREF _Toc8

\h 6

5-4- Questionnaires PAGEREF _Toc9 \h 7

5-5- selection of sapmle design : PAGEREF _Toc0 \h 7

5-6-analysis : PAGEREF _Toc1 \h 8

6- conclusion : PAGEREF _Toc2 \h 9

References : PAGEREF _Toc3 \h 10 Figures

INDEX \e " \c "1 " \z "2057 " Figure 1 : Features of the two main paradigms 7 abstract

Objective

The research objective is to examine hedging as strategy for dealing with the interest rate and foreign exchange risk . This is a multi-layered threat that can have both direct (e .g . operational ) and indirect (e .g . reputed ) impact . This analysis can bring into light the significance of the hedging on firm 's reputation for shareholders . An analysis and comparison of the existing framework and potential synergies will follow , in to showcase what are the tools readily available for corporations to use in managing the risk

Regulatory requirements that have appeared over the last few years have complicated the risk management effort , since these regulations did not stem directly from hedging but rather from other areas affecting the share price of the firm . The information security requirements that these frameworks have is going to be researched and an attempt to assign it to the general categories of information security risks will be made in to facilitate an easier management

Methods

In to get the desired information we will undertake literature searches , interviews and questionnaires so as to get the relevant information

1- introduction

The main aim of this is to undertake an analysis of hedging as a strategy of dealing with the risks of interest rate and foreign exchange rate risk . The also summarizes what has been written so far about what UK multinationals corporations are doing in to manage Financial Risk specifically Interest Foreign Exchange Risk Management and propose a methodological approach in to conduct a research concerning this issue 2- Literature review

In a ISO /TMB Risk Management Terminology (1999 ) risk is defined as combination of the probability of an event and its negative or positive consequences " In (Report to NASD Regulation , 1997 ) respondents of survey defined risk as the chance of : 1 ) losing some of their original investment 2 ) the value of a fund not keeping pace with inflation 3 fluctuations in the value of a fund 4 ) not having sufficient wealth at the end of an investment horizon to achieve financial goals 5 decreases in the income distributed by a fund 6 ) the performance of a fund falling short of...