风险管理试题
2020-03-03 18:51:29 来源：范文大全收藏下载本文
Sample Questions (RM)
Group One Brief analysis
I.A large-size company is planning to operate at overseas markets.How do you identify and analyze the poible risks to be dealt with by this company? My answer would be as follows: (1) I want to define risk as the uncertainty of the future outcome(s).
(2) As the three-stage approach to risk management indicates, the first step is to identify risks.Risks include but may not be limited to: legal/regulatory risk arisen from non-compliance in the new busine environment; busine risk, that is, failing to achieve busine targets due to inappropriate strategies, inadequate resources or changes in the economic or competitive environment; market risk, that is, the lo due to adverse changes in market prices such as foreign exchange rate, commodity price.
II.Analyze the poible risks for a construction contract. My analysis is as follows: In fact, every situation will involve one type or more of risks.A construction contract can get a company involved in the following risks: (1).Credit risk, that is, the client may not pay on time or at all.
(2).Liquidity risk.It refers to the situation that funds may be tied up if there are delays by the client in making payments.This may lead to the need to borrow funds thereby raising costs.
(3).Operational risk.When a company is awarded a construction contract in a new country, it is likely to involve a number of operational risks such as availability of staff, different working practices, availability of raw materials.Besides, we need to take account of cultural differences, language problems, clarity on roles and responsibilities o the joint venture partners.Moreover, there may exist poibilities for fraud, etc.
III.In comparison with developed markets, firms operating in emerging markets may have to deal with obvious or hidden risks.You are required to discu some strategies that can be adopted in risk management. As people look at emerging markets, there are a wide range of risks that may occur, totally unexpected events are more likely to happen, and there is greater volatility.Therefore, we probably need to do a number of things as below: (1).Find out what risk is really like – thorough due diligence will pay dividends.Use independent experts who can give impartial views and highlight those risk iues that a Head Office team are unlikely to find, such as corruption, security concerns, political stability, etc; (2).Ensure that your strategy is appropriate – is it the right market, the right time and the right way to enter? A structured approach which fits with group strategy is more likely to succeed than an opportunistic investment; (3).Do not underestimate cultural iues – any investment which does not take due account of culture is likely to flounder.Make sure that these iues are understood, not only on the ground but also in Head Office, and that people are aware of their own prejudices; (4).Take a long term view – like investing on the stock markets, best returns are likely to be made by taking long term decisions and avoiding over-reaction to short term volatilities.
Categorize risk types by definitions of risk terms
IV.Judge the types of risks based on your knowledge of the relevant risk definitions and fill it in the space provided.
1.The risk of failing to achieve busine targets due to inappropriate strategies, inadequate resources or changes in the economic or competitive environment._________________________________
2.The risk that amounts due to payment cannot be paid due to a lack of available funds._________________________________
3.The risk that financial records do not accurately reflect the financial position of an organization._________________________________
4.The risk of lo due to adverse changes in market prices, such as interest rate risk, foreign exchange risk, commodity price risk, share price risk.__________________________________
5.The risk that a small event will produce unexpected consequences in local, regional or global systems not obviously connected with the source of the disturbance.__________________________________
Comprehensive analysis
V.In the past two years, a certain country in Europe has been said to face tough economic situations.To survive in the European Union, the country has borrowed huge debts from other members.Therefore, a couple of European major countries have decided to extend credits to this member country.You are required to use three-stage approach and give your analysis by responding to the following three questions.
(1).What poible risks would be involved if the small country could not recover from its current crisis as expected? (poible risks plus brief analysis) (a).systemic risk.(b).sovereign risk.(c).credit risk.(d).market risk.
(2).How do you measure the major impacts on the regional economy?
Firstly, drag down (set back)the regional economic growth and adversely affect the economies of other European countries.
Moreover, have a negative effect on the expectations of busine community.
(3).Suppose you invested into this small country.What would you do to reduce (mitigate) your risks?
Judging the situation on a case-by-case basis, people have different risk appetite, so the ways of dealing with the case may vary: Firstly, withdraw your investment from this small country and put your investment elsewhere for better profits.
Secondly, avoid the most vulnerable industries and switch to relatively secure projects.
Moreover, suspend any expansion projects and wait for new opportunities.
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Group Two
Brief analysis
I.Analyze the poible risks arisen from liquidity problems.Discu how to deal with these risks.
Liquidity problems are quite common at marketplace.(1) In fact, liquidity risk means amounts due to payment cannot be paid due to a lack of available funds.The case may happen to any firms.If one partner fails to make due payment, credit risk happens.It may have negative effect on the future busine deals.
(2).To avoid liquidity problems, people can come up with schedules of payments in and out in the immediate future.These payments should be available for most businees together with a list of sources of funds which could be called upon at short notice.
II.Industry risks may vary from market to market.Take China market for example and discu your approach to collecting information about specific industries.
A wide range of risks can be found at marketplace nowadays.To gather useful information in China, we probably need to take into account the following things: (1).Size of market – it makes a great difference to know about the actual demand; (2).Growth rate– it is different doing busine in China than elsewhere in other emerging markets; (3).Number of companies in a specific industry – make sure there are adequate resources to compete with rivals; (4).Ranking risks for each industry – think about what your stance would be if it all went wrong.Could you afford to lose all your investment? If not, it may be better to reconsider and not bet the company on an investment with high risk, even if the rewards are quite enticing.
III.Some people believe that relatively more risks may occur in emerging markets than in developed markets.Discu the poible reasons from your point of view.First, political and economic instability; Second, vulnerability to natural disasters such as floods, earthquakes; poor infrastructure such as transport, utilities; reliance on a few single agricultural products and/or primary commodities.Moreover, social iues: low education levels; religion; huge population number; poor health or poverty; many local languages.
Categorize risk types by definitions of risk terms
IV.Judge the types of risks based on your knowledge of the relevant risk definitions and fill it in the space provided.
1.The credit risk aociated with lending to the government itself or a party guaranteed by the government.___________________________
2.The risk that a counterpart may not pay amounts owed when they fall due.___________________________
3.The risk of lo due to actions on or by people, procedures, infrastructure or technology or similar which have an operational impact including fraudulent activities._____________________________
4.The risk that an organization may suffer lo as a result of environmental damage caused by themselves or others which impacts on their busine._____________________________
5.The risk that the reputation of an organization will be adversely affected._____________________________
Comprehensive analysis
V.In 2011, a big economic power country has been said to reach its budget limit in spending.Moreover, a big part of its spending is from government treasury bonds.It means a huge budget deficit and poible default on its debts.In such a situation, you are required to use three-stage approach and give your analysis by responding to the following three questions.
(1).How many poible risks would be involved if such a debt crisis happened? (poible risks plus brief analysis) (A).systemic risk.(B).sovereign risk.(C).market risk.(D).credit risk.
(2).How do you measure the major impacts on the world economy as a whole? (need to point out at least two major impacts)
(A).Slow down (set back) the recovery proce of the world economy and adversely affect the economies of the developing countries that heavily depend on the developed markets for trade.
(B).Lower the world economic growth rate while reducing its own economic growth rate.
(C).Imply a negative effect on the prospect of some industries.
(3).Suppose you invested into such government bonds as a corporate entity.What would you do to mitigate your risks? (point out your ways of dealing with) People can be risk taking or risk averse, so I believe three poible ways can be considered as follows: Firstly, sell out the bonds in order to mitigate risks and choose other financial instruments for new investment.
Secondly, sell part of the bonds and wait for the situation to change for better.
Moreover,continue to hold the bonds as long-term investment and get the low but stable returns.
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