Instructions: This week you will select three of the questions below: (Use our course readings and the library to support your response. Start this section by telling your reader why it is important to understand financial risk management in a retail organization)
A – What does interest rate risk mean? Why should large retailers understand
this? How could/would a large global retailer manage interest rate risk?
Explain in detail.
B – What is meant by foreign exchange risk? Why might a manufacturer for a
retail store decide to use a supplier who’s products are priced in the same
currency? What are some of the foreign exchange rate hedging strategies
that you might use to minimize risk in the foreign exchange markets for
your retail organization? Explain in detail.
C – What is meant by credit risk? Specifically address why a risk manager
would be concerned with default risk, counter party risk, country risk and
concentration risk. What are some of the credit risk management
techniques discussed in our reading that would apply to a retail
organization? Why?
D – What is commodity risk? Why would a retailer be concerned about
commodity risk? What are some of the markets that you would look at to
hedge commodity risk in a retail organization? What are the main
strategies listed in our reading material about managing commodity price
risk?
Format:
APA Tittle Page
Introduction
Body: 3 of the questions
