a formal report of Risk Management for <The case of the UK Telecommunications Industry>

Abstract
The increased volatility of the financial markets, has given rise to increased financial price risks faced by companies. Companies are now exposed to risks caused by unexpected movements in exchange rates and interest rates. With the growing global presence of the telecommunications industry, the companies in these industries are exposed to a wide range of financial risks, in particular foreign exchange risks and interest rate risk. The management of these risks has become paramount for the survival of companies in today’s volatile financial markets.
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. Introduction
Over recent decades, the financial markets have become more volatile due to significant changes, which have taken place in the domestic and international financial markets. In the post war period, managers of corporations worried little about foreign exchange rate and interest rates, as interest rates were fairly stable and the fixed exchange rates of the Bretton Woods era allowed companies know with great certainty the amount of home currency it expected to pay for imports. However since the 1970’s changes occurred. After the collapse of the Bretton Woods system and the move to generalized floating among the major exchange rates, it soon became clear that large movements in exchange rates were occurring far more frequently than.......