doc 8 gentzoglanis en
TRANSCRIPT
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Risk Management & BusinessRisk Management & BusinessStrategies in theStrategies in the
Telecommunications IndustryTelecommunications Industry
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Table of ContentsTable of Contents
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Risk Management and valueRisk Management and value
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Risk Management and costRisk Management and cost
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Types of RiskTypes of Risk
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Summary of types of Risk and RiskSummary of types of Risk and Risk
ManagementManagement
Market risk Operational Liquidity risk
Telecommunications industry risk identification and its management
CRegulatory
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Types of RiskTypes of Risk ""
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Risk identification and Risk Comparisons -
Transaction, Economic & Operating RiskDate of change in the exchange rate
Accounting risk exposure
Transaction risk exposure
Operating risk exposure
Time
Changes in equity in Consolidated
Financial Statements due to changesin the exchange rate
Changes in expected future cash flows due to
unexpected changes in the exchange rate
Impact of settling outstanding obligations entered into before change in
the exchange rate but settled after change in exchange rates
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Risk identification and riskRisk identification and risk
tolerancetolerance
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A Risk map or risk IDA Risk map or risk ID
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A Risk map or risk ID (1)A Risk map or risk ID (1)
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Refinement of identifiable risks (2)Refinement of identifiable risks (2)
44
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Further refinement of identifiableFurther refinement of identifiable
risks (3)risks (3)
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3
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Managing financial risk: types ofManaging financial risk: types of
hedginghedging
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Managing financial risk: alternativeManaging financial risk: alternative
hedging strategieshedging strategies ,,
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Hypothetical example of managing financial risk44
1.68 1.70 1.74 1.761.72 1.821.801.78 1.861.84
Cost in US dollars of
Telcos 1,000,000 A/P
1.68
Ending spot exchange rate (US$/)
1.70
1.72
1.74
1.76
1.78
1.80
1.82
1.84
Uncovered costs
whatever the ending
spot rate is in 90 days
Forward contract hedgelocks in a cost of $1,754,000
Money market hedge
Locks in a cost of $1,781,294
Forward rate
is $1.7540/
Call option strike
price of $1.75/
Call option hedge
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Types of hedging, strategy choiceTypes of hedging, strategy choice
and outcomeand outcome
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Risk management in practiceRisk management in practice
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Risk management in theRisk management in the
telecommunicationstelecommunicationsindustryindustry
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Risk management in theRisk management in the
telecommunications industrytelecommunications industry
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Risk management in theRisk management in the
telecommunications industrytelecommunications industry 00
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Risk management in theRisk management in the
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Risk management in theRisk management in the
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TELUSTELUS risk and controlrisk and control
assessment processassessment process
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Business riskBusiness risk
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TELUS definition of businessTELUS definition of business
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
TELUSTELUS future business resultsfuture business results
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Principal risks that could affectPrincipal risks that could affect
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Principal risks that could affectPrincipal risks that could affect
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Financial risk and itsFinancial risk and its
managementmanagement
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Financial risk and its managementFinancial risk and its management +0=3+0=3
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Financial risk and its managementFinancial risk and its management +0=3+0=3
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Financial risk and its managementFinancial risk and its management
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Financial risk and its managementFinancial risk and its management 4+0=3%4+0=3%
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Financial risk and its managementFinancial risk and its management
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Financial risk and its managementFinancial risk and its management )%)%
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Financial risk and its managementFinancial risk and its management ))
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Financial risk and its managementFinancial risk and its management ))))
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Swaption +*@"@886"
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Risk management in theRisk management in the
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Risk management in theRisk management in the
telecommunications industrytelecommunications industry , 4
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CONCLUSIONSCONCLUSIONS *
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