BUS7011 Risks Management

BUS7011 Risks Management

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Question:

In the risk management module, we cover some basic concepts, models, and theories of risk management that can be used by both financial and non-financial firms to manage risks. They include: the mean-variance model; the CAMP model and behavioural finance; bond valuation; the yield curve; financial derivatives (forward/futures, options), and Value at Risk (VaR). In this assignment, you are asked to write an essay in which you select TWO risk management tools (theories/models) from the above-mentioned list and discuss the application of each of them to solving real-life problems in non-financial firms.
You should include at least the following elements in the essay:
(1) Explanation of the chosen risk management theories/models(2) What are the debates regarding the chosen theories/models in the existing literature?(3) How have the chosen risk management theories/models been applied to solve real-life problems in non-financial firms?(4) Your own evaluation of the applications of the chosen risk management theories/models
Please keep in mind that you do not unintentionally plagiarise. All existing studies used in your essay should be properly cited.