Because of their operations, companies are exposed to several kinds of market-based risks -industry-specific and operation-derived. Once companies decide that they are going to compete in any given business, managers should analyze the risks entailed by each operating structure and determine which risks the company will assume and which it will eliminate.

In this seminar, we will introduce a theoretical model to identify company risks,as well as a decision-making model to evaluate the convenience of facing or deleting (totally or partially) these risks. To this end, hedging techniques and their pros and cons will be discussed in depth.

Hedging techniques are usually studied in portfolio and investment management areas and tend to be rather math-intensive and intimidating at first. This course has been designed to help executives, through the use of the case method, to understand these tools, stressing the notions that are required for top management. Risk management understanding is instrumental for top management officials..

• When is it convenient to hedge risks?

• Hedging instruments.

• Exchange rate risk.

• Interest rate risk.

• Commodity risk.

• Moving towards integrated risk management.