BHP limited: risk management strategy
Abstract
BHP Limited, a global natural resource
company based in Australia, has traditionally
hedged its market price risks with
derivatives. Based on the analysis of a
'Cash Flow at Risk' model, which exploits
the diversification effect in a portfolio
context, it has now decided to discontinue
its hedging activities. However, this portfolio
approach to risk management raises
questions about the standard 'stand-alone'
approach to project evaluation and capital
allocation.
Collections
- Journal Articles [3689]