Spring 2013 Finance 4355 International Risk Term Paper You will be permitted to draw from numbers to determine your company and they are on the list on my website and in the attachment. Turn in your...

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Spring 2013 Finance 4355 International Risk Term Paper
You will be permitted to draw from numbers to determine your company and they are on the list on my website and in the attachment.
Turn in your selection typewritten, on January 28, 2013. Companies not on this list must be pre-approved in order to receive credit. You may also select from one of the six books on the attached list but must have my approval of any one of the six.
3. After reviewing the website, annual report and 10K, prepare a complete list of exposures to loss for your selected company.
4. Using the information on the website, discuss insurance rules'and regulations in the countries in which they operate Outside tile United States. Should your firm have no operations outside the United States, use Germany or France.
5.
Avail yourself to the Handbook of International Insurance which is available in my office and at the reserve desk at the U of H library and online and address at least one of the counties contained in that book-Japan, UK, France, Germany, Italy, Canada, Netherlands, Spain, Ireland, China , India, South Africa, Brazil and South and East Asia. Describe and include insurance operations in at least one country the firm operates in. Be careful in the amount of detail — not much is needed.
6. As we will discuss in Chapter 17, Political risk is a significant exposure for all companies operating outside of the United States. Refer to Table 17.1 page 434 of the text and utilizing only the websites listed, investigate the political risk exposure in at least two of the countries your firm operates in and include that information in detail in your report.
7. Examine the many risks you have complied in item 3, including which you would retain and why and which and how you would transfer via insurance.
8. Summarize all your findings in a final report accompanying all the several items and submit it on April 24, 2013. This report must be prepared in strict report form and must be at least 8 pages in length plus cover page and bibliography or works cited.
In order to be complete, the report must include at minimum the following: • List of risks and exposures • How these could be or should be managed, that is retained, transferred via insurance or some other method. • Specific information and examination of operations in countries other than the United States. That should include specific issues about insurance availability and regulation. (item 4 & 5) • Specific information on political risk exposure gathered from, and identified, one or more of the websites listed in Chapter 17. • Make use of the website for your firm for developments during months/years that could or do impact operations. • Be extremely careful with use of zeros in millions and billions of S's.
9, These reports will be graded and returned to you on or before the final.
10. Your insurance discussion should address the requirements in that country, admitted vs. non admitted and a brief description of the rules you read. Do not over state the role of insurance for your firm and tie in if you can, the role of the broker in this discussion You must work individually.
Answered Same DayDec 22, 2021

Answer To: Spring 2013 Finance 4355 International Risk Term Paper You will be permitted to draw from numbers to...

Robert answered on Dec 22 2021
127 Votes
Risk
International risk term paper
Research Company: Noble Energy Inc
Risk
Introduction and background
Noble Energy firm is a firm that operates in the energy sector. The energy sector itself is
a high risk sector. Moreover as Noble Energy operates primarily in the oil and gas sector with
some of its operations focused on drilling, there are multiple risks and exposures faced by
Noble
Energy. An oil and gas firm carries out its operations in a high risk environment. It is an oil and
gas drilling company with its headquarters in London and operations in Perth as well as several
other parts of the world.
Natural resources are of great importance. Oil is an extremely important natural resource.
It becomes very crucial economically for nations to obtain oil in order to grow as it is a major
source of several energies. It is the 5
th
largest deepwater drilling company in the world and has
won several accolades for its operations. Moreover as it owns a wide portfolio of assets and
licenses it is a firm with high credibility. It operates with risk mitigation strategies that help
Noble Energy operate with optimization of profits. Moreover it operates with a strategy of early
program execution and commercialization at the right time which makes it an extremely
successful firm in the oil and gas drilling domain (K.G. Berger, 2003).
In case of Noble Energy, as its operations are spread oversees, it creates higher risks due
to exposure to the political norms of multiple countries. The governments of several nations are
not supportive to the operations of a oil and gas firm as they are extremely cautious about the
risks that are posed by the failure in safety systems and operations of these firms (Mohd Noh
Daliminv , 1995).
Incidents like the Gulf disaster have further strengthened this fear and governments
scrutinize the oil and gas companies thoroughly before giving them permissions to operate. In
Risk
this way the political risk and other exposures are very high in case of an energy business,
especially at the international levels. It leads to high risk operational environment and also
causes multiple issues.
List of risks and exposures
The following is the risk of list and exposures to which Noble Energy is prone to and the
estimated ways of mitigating these risks have been provided:
Risks Analysis and mitigation Risk management
Economic risk Economic risk is high in case of
international scenario. The impact of
economic recession in one nation can
trigger losses all over the world. It is
important that Noble Energy considers
new operations in counties that are
economically stable and diversifies its
investment portfolio.
Economic risk can be managed
through hedging and ensuring
that the portfolio of Noble
Energy is well diversified. This
requires it to further diversify
its international operations.
Operational risks
Social and ecological responsibility is
a major concern for Noble Energy as
it operates in a high risk sector. In
case of Noble Energy carrying out in
severe and dangerous conditions, it
becomes essential that there be
Operational risks have to be
managed through insurance
where in the increase in costs of
operations, raw material prices
and loss of equipment and
machinery can be insured.
Risk
several social and ecological
responsibility considered by the
organization. Safety measures and
environmental protection are of high
importance. Acceptance by the host
country and the society are also
crucial for Noble Energy to exist.
Strategic risk Noble Energy faces strategic risk as in
case of any incident or mishap like an
oil spill, Noble Energy can
immediately be ordered to terminate
its operations all over the world which
can lead to loss of billions of dollars.
Financial risk Financial risk in Noble...
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