As opposed to operational risks, which influence a specific firm or industry, financial risks are market-wide risks that can affect the financial performance of companies in the whole economy.1 Both kinds of risk exposure can have substantial impact on the value of a firm. In this context, we define corporate risk management as the form of trying to control the effect of these risk exposures on firm value. Commodity price risk is often considered as a financial risk as well, despite the particular that this is a specific risk exposure for the industry in which a corporation operates. That commodity price risk is usually restricted as a financial risk, is induced by the fact that there exist many derivative instruments in the financial markets with commodity prices as underlying assets. This results in possibilities to efficiently carry-over commodity price risk to other market participants. there are several... If you want to get a full essay, ordering it on our website: Orderessay
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