Political understanding is a key component of managing risk in this environment and must be evaluated carefully in order to contain risk.
This study conducts interviews with a representative of the Bank of England and well as financial figureheads to develop a wider understanding of the problem.
Suggested initial topic reading: An analysis of the extent to the most important risk that international banks face in cross-border operations is political risk As Garrett, Mahadeva and Sviridzenka note, ‘systemic risk among the network of international banking groups arises when financial stress threatens to criss-cross many national boundaries and expose imperfect international co-ordination’ (2011: 1).
This paper considers this phenomenon and evaluates methods by which international banks may determine and mitigate risk in a global climate that is no less stressful today than it was ten, twenty or one hundred years ago.
Banks remain a predominant source of funding, even in the wake of the financial crisis, which has seen numerous banks seek to reduce their exposure to shipping firms.
This dissertation undertakes interviews with three ship owners in order to break through the discreet world of shipping finance, and presents a synthesised analysis of not only how they arrive at financing decisions, but an objective view of their best options.Additionally, the study utilises a primary research method, with the analysis of one-on-one interviews with five leading figures in the City.Finally, it concludes with recommendations for how this market can act responsibly in the future.The dissertation suggests that firms need to maintain high cash flows if they are to remain compliant with covenants, and that banks restrict access to credit facilities where firms are found guilty of covenant violations.This is a highly topical dissertation that can be moulded to a number of global arenas.Suggested initial topic reading: Financial risk management in maritime finance The volatility of the maritime industry is well known, and this volatility has been further affected by changes in the financing of ships as banks become more cautious lenders.This study considers how shipping finance is likely to become increasingly involved in loan securitisation, which will bring new risks to ship owners.Disclaimer: This work has been submitted by a student.This is not an example of the work produced by our Topics with Titles Service.This study considers the measures ship owners will need to undertake to prepare themselves for such changes, with particular regard to financial risk management.It evaluates maximum levels of risk, and how such levels can be determined, and speculates how this will change shipping investment and new build rates.