role of international finance manager
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What are the roles, duties and responsibilities of international finance manager... aTRANSCRIPT
Role of International Finance Manager
Fund RaisingInvestment DecisionDividend Decision
Role in International Finance
• Similarly Fund raising in International market• Taking investment Decision• Minimizing risk• Hedge against foreign exchange exposure
Risk to Handle in Foreign operation
• Default Risk• Political Risk• Economic Risk• Piracy, sea pirates, accidents insurance• Financial Risk• Business Risk• Foreign Exchange Risk
Risk Minimization
• Understanding various risk minimizing instruments
• Understanding the risk associated with foreign exchange rate fluctuation
Understanding of Risk Associated with the Exchange risk
• Transaction Risk• Operating and Strategic Risk• Translation Risk
Roles are different according to Nature of Industry
• Banking and Investment Financial Industry
International Finance Manager/ Portfolio Manager
• Understanding the Risk• Forecasting
• Application of Derivative in Risk minimization• Understanding international market trend• Understanding the competition • Managing the subsid
• Understanding of International Monetary System
• Understanding of Foreign Exchange Market• Understanding nature and measurement of
Exposure and Risk
Responsibilities of Finance Manager
• To keep update of significant environmental changes
• To understand and analyse the complex interrelationships between relevant environmental variables and corporate responses
• Adapt the finance function to significant changes in firm’s own strategic posture
• To take stride past failures and mistakes to minimize their adverse impact
Major Challenges
• Integration , boundaries between domestic and international market getting blurred
• Domestic market are opened up for foreign borrowers borrower are allowed to access foreign financial market.
• Functional Integration “ everybody does everything”
• Securitization and disintermediation