scholarly journals Rights, Duties and Obligations of Counter-Parties following Default under Derivative Contracts

2020 ◽  
Author(s):  
Sean F. Collins
Keyword(s):  
Risk Management ◽  
Good Faith ◽  
Management Tool ◽  
Contractual Obligations

The article discusses the use of derivative contracts as a risk-management tool and the results of terminating such contracts, including: termination under conditions of insolvency and non-insolvency of a counter party; the use of collateral security to mitigate the risks of contractual obligations that might terminate prematurely; the duty to negotiate in good faith; notice requirements for termination of a derivative contract; and damages/penalties that arise when a contract is terminated prior to completion.

Parameter framework - a risk management tool to improve the safety of tailings facilities

2007 ◽  
Vol 15 (2) ◽  
pp. 223-233 ◽  
Author(s):  
J. Engels ◽  
D. Dixon-Hardy ◽  
C. McDonald ◽  
K. Kreft-Burman
Keyword(s):  
Risk Management ◽  
Management Tool

Risk management tool to define a corrective storage to enhance Salmonella inactivation in dry fermented sausages

2021 ◽  
pp. 109160
Author(s):  
Cristina Serra-Castelló ◽  
Sara Bover-Cid ◽  
Margarita Garriga ◽  
Tina Beck Hansen ◽  
Annemarie Gunvig ◽  
...  
Keyword(s):  
Risk Management ◽  
Management Tool ◽  
Fermented Sausages ◽  
Dry Fermented Sausages

scholarly journals A Methodical Approach to Design and Valuation of Weather Derivatives in Agriculture

2013 ◽  
Vol 2013 ◽  
pp. 1-8 ◽  
Author(s):  
Jindrich Spicka ◽  
Jiri Hnilica
Keyword(s):  
Risk Management ◽  
Low Income ◽  
Crop Yields ◽  
Option Price ◽  
Interdisciplinary Approach ◽  
Weather Conditions ◽  
Low Income Countries ◽  
Management Tool ◽  
Weather Derivatives ◽  
Methodical Approach

The paper deals with weather derivatives as the potentially effective risk management tool for agricultural enterprises seeking to mitigate their income exposure to variations in weather conditions. Design and valuation of the weather derivatives is an interdisciplinary approach covering agrometeorology, statistics, mathematical modeling, and financial and risk management. This paper first offers an overview of data sources and then methods of design and valuation of weather derivatives at the regional level. The accompanied case study focuses on cultivation of cereals (wheat and barley) in the Czech Republic. However, its generalizability is straightforward. The analysis of key growing phases of cereals is based on regression analysis using weather indices as the independent variables and crop yields as dependent variables. With the bootstrap tool, the burn analysis is considered as useful tool for estimating uncertainty about the payoff, option price, and statistics of probability distribution of revenues. The results show that the spatial and production basis risks reduce the efficiency of the weather derivatives. Finally, the potential for expansion of weather derivatives remains in the low income countries of Africa and Asia with systemic weather risk.

scholarly journals Livestock Gross Margin–Dairy: An Assessment of Its Effectiveness as a Risk Management Tool and Its Potential to Induce Supply Expansion

2014 ◽  
Vol 46 (2) ◽  
pp. 245-256
Author(s):  
Kenneth H. Burdine ◽  
Yoko Kusunose ◽  
Leigh J. Maynard ◽  
Don P. Blayney ◽  
Roberto Mosheim
Keyword(s):  
Risk Management ◽  
Management Tool ◽  
Futures Prices ◽  
Gross Margin ◽  
Insurance Program ◽  
Multiple Regions ◽  
Estimated Risk ◽  
Futures Price ◽  
Supply Analysis ◽  
Risk Reducing

An evaluation of the risk-reducing effectiveness of the Livestock Gross Margin–Dairy (LGM-Dairy) insurance program, using historical futures price data, predicts economically significant reductions in downside margin risk (24–41%) across multiple regions. Supply analysis based on the estimated risk reduction shows a small supply response, assuming minimal subsidization. A decomposition of the simulated indemnities into milk price and feed price components shows comovements in futures prices moderating the frequency and levels of indemnities.

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