Risk management

Risk management

1. We have already seen how we are exposed to movements in the exchange rate of a currency, which can cause us losses in operation.

   • Derivative
     • Any financial derivative product.
       • Future
         • A future is an agreement between two parties to buy or sell an asset in some future time by a certain price, but unlike the forwards, these are quoted and traded on the stock exchange
       • Option
         • An option is a tool that gives you the right but not the obligation, to buy or sell an underlying asset at a future date at a specific price.
           • Call option
             • Is the option that gives you the right but not the obligation, to buy an underlying asset at a specific price during a given time.
           • Put Option
             • Is the option that gives you the right but not the obligation, of sell an underlying asset at a specific price during a given time.
       • Forward
         • It is an agreement to purchase or sell an asset or underlying asset at a future date at a specified price.
       • SWAP
         • Exchanges or a series of forwards
           • Its a mechanism that allows to cover the financial risks of the companies, such as the interest rates, the exchange rates etc. Include a series of forwards or contracts developed made to the measure of the customers.
     • It is that whose value depends on the value of another instrument, known as underlying good
   • Market of financial derivative products
     • The derivatives market is where are traded futures, options, forwards and swaps.
       • Commoditie
         • Its a physical good; grains such as corn, wheat, sorghum, soybean oil; the meat: of beef and pork, etc

2. The role of the risk manager should be, in summary accounts, a provider of information that allows the direction of the company or the council of administration to take business decisions in a certainty panorama and to support in the decision making on how covering the exhibitions of risk to the one that is exhibited in a given context of managerial operation