Security Assignment
Instructions: You will select three of the questions below: (Use our course readings and the library to support your response. Start this section by telling your reader why it is important to understand financial risk management in a retail organization)
• What does interest rate risk mean? Why should large retailers understand this? How could/would a large global retailer manage interest rate risk? Explain in detail.
• What is meant by foreign exchange risk? Why might a manufacturer for a retail store decide to use a supplier who's products are priced in the same currency? What are some of the foreign exchange rate hedging strategies that you might use to minimize risk in the foreign exchange markets for your retail organization? Explain in detail.
• What is meant by credit risk? Specifically address why a risk manager would be concerned with default risk, counter party risk, country risk and concentration risk. What are some of the credit risk management techniques discussed in our reading that would apply to a retail organization? Why?
• What is commodity risk? Why would a retailer be concerned about commodity risk? What are some of the markets that you would look at to hedge commodity risk in a retail organization? What are the main strategies listed in our reading material about managing commodity price risk?
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.