Risk Financing and Treasury Management Assignment
Added on 2021-05-31
9 Pages1644 Words53 Views
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Running head: RISK FINANCING AND TREASURY MANAGEMENTRisk Financing and Treasury ManagementUniversity NameStudent NameAuthors’ Note
2RISK FINANCING AND TREASURY MANAGEMENTTable of Contents(i) Description of the facts, including background.....................................................................2(ii) Explanation of the risk that each was subject to and detail RM techniques used................4(iii) Explanation of what went wrong in detail;.........................................................................5(iv) Suggestions regarding alternative RM techniques that could have been used;...................5(v) Evaluation of the RM performance;.....................................................................................6(vi) Lessons learned from the experience.................................................................................6References..................................................................................................................................8
3RISK FINANCING AND TREASURY MANAGEMENT(i) Description of the facts, including background Sir Francis established the Barings Bank during the year 1762. The primary functions of theBarings Bank include banking, security brokering, management of asset and many others.Impact analysis reflects that there are six different powers particularly in Europe that includesEngland, Prussia, Austria, Russia, France as well as Baring Brothers (Bessis, 2015). The bankcollapsed during February 1995 as a consequence of actions of one of the traders of thecompany names Nick Lesson who necessarily lost around $1.4 billion by way of investing inparticularly Singapore International Monetary Exchange (abbreviated as SIMEX) withchiefly derivative securities. In essence, this was the second time the bank encounteredbankruptcy. Subsequent to the period of collapse, Barings Bank was purchased by ING that isa Dutch Bank as well as insurance corporation. Background Information on Barings Bank
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