Types and sources of risk

The risk of the other party to a contract failing to honour its obligations is an example of:

A company has an overdue trade receivable from a customer located abroad. The amount outstanding is due to be paid in a foreign currency. The greatest potential loss arises from:

1st January X8: Company AB borrows £100,000 under a 5 year bank loan linked to 6-month LIBOR plus 50 basis points, 1st January X8 5 year semi-annual fixed rate swap rate is 6% against 6-months LIBOR Outturn 6-month LIBOR rates were as follows: 1st January X8 5.0% 1st July X8 5.5% - 1st January X9 6.1% For company AB. the interest rate exposure on the unhedged bank loan is:

Generally aggressive financing:

A company's credit standing is LEAST likely to affect its ability to:

The interest rate arising on a long term floating rate is a:

The offices of a small company are threatened by fire risk. this risk is:

Financial risk includes:

ABC'S principal costs are a floating rate loan financing a property and staffing costs. ABC revenues depend primarily on chargeable staff hours. ABC has the following financial risks.

The loss of a building to fire is a

which of the following is MOST likely to indicate hight counterparty risk for a corporate?

which of the following is LEAST likely to influence decisions whether or not to manage a particular risk?

A UK company exports hight-vloume goods to the USA priced in US dollars. The goods are manufactured to a customer's specific requirements. Standard terms are 90 days credit. Raw materials are sourced in the UK and main competitors are located in the UK. What is the key foreign exchange risk to which the company is exposed?

A company has debt of 100 million, operating profit of 30 million, interest cover of 4.0 and an average rate payable of 7.5%. What is the new interest cover if the average interest rate payable rises to 10%

The share prince of a UK airline fluctuates with the changes in the USD price of oil. This is best classified as an example of:

On 1 January 20X0 R GmbH, a German based manufacturing company is due to pay a UK supplier GBP 100,000 on 1 April 20X0. R GmbH has a 31 December year end. Market data is as follows: FBP/EUR spot: 1.3008/16 Three--month forward points: 200/211 Three month standard deviation: 3.8% Company R's GBP exposure on this future supplier payment is best classified as

A BBB rated parent company has made loans, in EUR, to its French subsidiary. The US parent is close to breaching a book vaue gearing covenant. It is principally concerned with

A company is funded solely by a large overdraft and has no cash equal, what is the impact of a rise interest rates?