CORPORATE RISK MANAGEMENT THROUGH FINANCIAL DERIVATIVES a CASE STUDY OF SELECTED INDIAN COMPANIES

Abstract

newline Risk is an important element of corporate functioning and governance. There should be a newlineclearly established process of identifying, analysing and treating risks, which could prevent the newlinecompany from effectively achieving its objectives. It also involves establishing a link between newlinerisk-return and resourcing priorities. Appropriate control procedures in the form of a risk newlinemanagement plan must be put in place to manage risk throughout the organization. The plan newlineshould cover activities as diverse as review of operating performance, effective use of newlineinformation technology, contracting out and outsourcing, so on and so forth. One of the very newlineeffective risk management plans and techniques is the use of financial derivative which has newlineevolved as the bit-coin age standard of risk management and hedging. It provides the flexibility newlineto its users to use it as per their risk appetite in commensurate with the cost comfortability. Due newlineto such convenience the world has witnessed an exponential growth in terms of the amount of newlinefinancial derivatives use and it has surpassed all other forms of risk management tolls.