Corporate Risk Management in Emerging Markets

Bachelor Thesis , 2016 , 40 Pages , Grade: 1.7

Business economics - Business Management, Corporate Governance

Managing risks is essential for corporations and has a tremendous impact on their performance. However, doing it sufficiently can be challenging, especially in Emerging Markets (EMs). Due to its underdeveloped environment, corporations often face enormous difficulties while managing risk in these countries.

The purpose of this paper is to outline the issues and differences of corporate risk management in emerging economies compared to Developed Markets (DMs). After a short introduction, the second chapter describes risk management in DMs and gives an overview of common corporate risks.

The third chapter characterizes EMs and details its risk management. In that connection, the focus lies on (1) the risk management process, (2) the measurement of risk and (3) the tools and techniques to mitigate risks in EMs. Conclusively, the paper summarizes the main factors for corporations that are fundamental for managing risks in EMs effectively.

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
• 2. Conventional Corporate Risk Management
  • 2.1 General Definition of Corporate Risk Management
  • 2.2 The Concept of Enterprise Risk
  • 2.3 Types of Corporate Risks
    • 2.3.1 Financial Risks
    • 2.3.2 Non-Financial Risks
  • 2.4 Tools and Techniques of Corporate Risk Management
    • 2.4.1 The Corporate Risk Management Process
    • 2.4.2 Measurements for Corporate Risks
    • 2.4.3 Mitigation of Corporate Risks
• 3. Corporate Risk Management in Emerging Markets
  • 3.1 An introduction of Emerging Markets
    • 3.1.1 Definition of Emerging Markets
    • 3.1.2 Emerging Markets' Characteristics
    • 3.1.3 Corporate Risk Types in Emerging Markets
  • 3.2 Corporate Risk Management in Emerging Markets & Developed Markets
    • 3.2.1 The Corporate Risk Management Process
    • 3.2.2 Measurements for Corporate Risks
    • 3.2.3 Mitigation of Corporate Risks

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to examine the challenges and differences in corporate risk management in emerging economies compared to developed markets. It provides a comprehensive overview of risk management practices, focusing on the specific challenges encountered in emerging markets.

• Defining and categorizing corporate risks
• Examining the risk management process in developed markets
• Analyzing the specific characteristics of emerging markets
• Identifying and evaluating the key risks faced by corporations in emerging markets
• Exploring the tools and techniques for mitigating risk in emerging economies.

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1 introduces the topic of corporate risk management and its importance in the context of emerging markets. Chapter 2 provides a detailed explanation of risk management in developed markets, defining key concepts and outlining various risk types. It explores the risk management process, measurement tools, and mitigation strategies commonly used in developed economies.

Chapter 3 delves into the specifics of corporate risk management in emerging markets. It defines emerging markets, highlighting their unique characteristics and the distinctive risks associated with operating in such environments. The chapter further explores the challenges and adaptations of risk management practices in these economies, focusing on the risk management process, measurement techniques, and mitigation strategies tailored for emerging markets.

Schlüsselwörter (Keywords)

This paper explores the key concepts of corporate risk management, emerging markets, risk assessment, risk mitigation, and the specific challenges faced by corporations in diverse market environments. It examines the differences in risk management practices between developed and emerging markets, including risk identification, evaluation, and mitigation strategies. The paper aims to contribute to a deeper understanding of the intricacies of corporate risk management in a globalized and rapidly evolving economic landscape.

• College: European University Viadrina Frankfurt (Oder)
• Grade: 1.7
• Author: Marvin Arras (Author)
• Publication Year: 2016
• Pages: 40
• Catalog Number: V339623
• ISBN (eBook): 9783668293977
• ISBN (Book): 9783668293984
• Language: English
• Tags: risk measurement, risk management, corporate exposures, emerging markets, emerging economies, risk mitigation, currency risk, political risk, risk management process