The World seems to be messed-up giving rise to risks which may not be seen before.
After determination of the Co's risk profile and in an effort to eliminate inefficient hedges, CRO designs a risk management program (RMP) - employing futures, options, forwards and swaps - with the Co's underlying cash position for the purpose of manipulating the Co's risk exposure in an infinite variety ways.
Assuming they are efficient counter-parties and positive trade-off between the cost of hedging and hedge effectiveness, will RMP provides a "Minimal-Risk" Profile for the Co and, therefore, increases its shareholder value?
Your comments pls.
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