Corporate Risk Management in Slovenian Firms

Managing Global Transitions, Vol. 7, No. 3, Fall 2009

Posted: 17 Sep 2011

See all articles by Ales S. Berk

Ales S. Berk

SEB LU / University of Ljubljana - School of Economics and Business

Jožko Peterlin

University of Primorska

Mitja Cok

University of Ljubljana - Faculty of Economics

Date Written: 2009

Abstract

In today's competitive environment the modern firm increasingly focuses on identifying, measuring and managing various risk exposures. Risk management is interwoven with the firm's business strategy and impacts considerably on its competitive position. Thus, management should develop an integrated approach to address it. Although hedging using derivatives accounts for just one part of such an approach, the article solely covers financial risk management using derivatives. Namely, it is found that even Slovenian blue-chip firms still have room to improve as they have only recently started to use derivatives. The article reviews some of the most interesting characteristics and practices of modern Slovenian financial risk management departments and provides a practically oriented case-study which describes the important steps a risk manager must take to hedge commodity price exposure.

Keywords: risk management, derivatives, corporate finance, hedging accounting, reporting, supervision, auditing

JEL Classification: G32

Suggested Citation

Berk, Ales S. and Peterlin, Jožko and Cok, Mitja, Corporate Risk Management in Slovenian Firms (2009). Managing Global Transitions, Vol. 7, No. 3, Fall 2009 , Available at SSRN: https://ssrn.com/abstract=1928863

Ales S. Berk (Contact Author)

SEB LU / University of Ljubljana - School of Economics and Business ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Jožko Peterlin

University of Primorska ( email )

Cankarjeva 5
Koper, SI-6000
Slovenia

Mitja Cok

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

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