Risk Management
Published  5 MIN READ
Please note: this article is over 14 years old. If you feel this article is inaccurate or contains errors get in touch here . Many thanks, TMI

Market Risk Management: A Brief Discussion

by professor Eben Maré, University of Pretoria

Multibillion dollar losses in the financial markets over the last two decades have served to focus companies’ attention on management of market risks. In many cases these losses have arisen from new investment related product innovation or a mere misunderstanding of the risks inherent in a specific new business endeavour involving the financial markets. In this short note we shall aim to present the essential ideas underlying a market risk management programme.

Firstly, what is market risk? Market risk arises by virtue of our income statement or balance sheet changing in value as a result of changes in the values of traded securities, these typically being:

1. Equities,

AccountingCash Flow ForecastingCash ManagementCorporate Banking

Related Articles

Risk Management
Transfer Pricing for Treasurers: Navigating the Pitfalls

This article highlights some of the hurdles that treasurers must negotiate when designing and implementing tax transfer pricing policies.

Risk Management
Ports in a Storm

TMI asks whether today’s data-driven world has added to the challenge of counteryparty risk management or offers the ultimate solution to mitigating it.

Risk Management
Behavioural Economics

Increasing numbers of firms are leveraging insights into human psychology to help improve their operations, especially when it comes to risk management.

Risk Management
Getting Flexible: Treasury’s Response to Deglobalisation

The recent publication of the Deutsche Bank-sponsored Economist Intelligence Unit survey, ‘Manoeuvring uncertainty: Treasury priorities in a volatile, post-pandemic market’, revealed rising macroeconomic concerns...

Risk Management
All For One

Danone’s multi-phase technology-fuelled project tackling risk in Asia has created a more agile, resilient, and connected operation.

Risk Management
Taming the Triple Threat

TMI invites three experts from NatWest to explain why risk management needn’t be a Herculean task in the year ahead.

Risk Management
United We Stand: Tackling Cybercrime Together

Cybercrime and fraud are on the rise and new attack vectors are emerging with alarming frequency. Nicolas Trimbour, Head of Fraud Prevention and Chief Data Officer for Cash Management, BNP Paribas, and Laurent Sarrat, CEO at payments security fintech Sis ID, explore the...

Risk Management
A Piece of Cake: Unwrapping the Financial Risk of Food Products

As the economy grapples with higher prices for almost everything, one can look at this year’s super cycle across all commodities as a significant factor to sticker shock in the food aisles. According to the US Labor Department, in October consumer prices in North...

©2023 P4Publishing Limited All rights reserved. Registered in England & Wales No. 5838515