This seminar is intended to train students in the use of economic, financial and legal analysis in the management of selected risks at the international level.
 
 

1. - International business risks
 
 

1.1. - Insurable risks

1.1.1 - Law and economics of insurance

1.1.2. - Products liability

1.1.3. - Environmental risks
 
 

1.2. - Corporate crises
 
 
 
 

2. - International financial risks
 
 

2.1. - Quantifying and managing risks at the firm level

2.1.1. - Accounting exposure

2.1.2. - Economic Exposure
 
 

2.2. - Predicting and managing international financial crises

2.2.1. - Stock market crashes

2.2.2. - Banking crises

2.2.3. - Financial firm crises

2.2.4. - Currency crises

2.2.5. - Country crises
 
 

3. - Value at risk

3.1. - Definition

3.2. - Applications on the international level

3.3. - Applications at the firm level
 
 

Sources:

Richard Schaffer, Beverley Earle, Filiberto Agusti, International Business Law and Its Environment South-Western College Publishing, 1998, ISBN: 0538884835

Jagdeep S. Bhandari, Alan O. Sykes, Economic dimensions in international law, Cambridge,1997

Tom L. Beauchamp, Norman E. Bowie, Ethical Theory and Business, 1993

Patricia Birnie, Alan Boyle, International Law and the Environment by (July 2001) Oxford Univ Press; ISBN: 0198765525

Mark S. Dorfman, Introduction to Risk Management and Insurance, Prentice Hall, 1998

Dimitris N. Chorafas, Chaos Theory in the Financial Markets, Probus, 1994

Richard Cooter, Thopmas Ulen, Law and Economics, harper Collins, 1988

Ronald J. Gilson, Bernard S. Black, The Law and Finance of Corporate Acquisitions, Foundation Press, 1995

Glyn A. Holton, Value-At-Risk: Theory and Practice, Academic Pr; 2001 ISBN: 0123540100

John C. Hull, Options, Futures and other Derivative Securities, Prentice Hall, 1989

Philippe Jorion, Value at Risk: The New Benchmark for Managing Financial Risk, McGraw-Hill, 2000 ISBN: 0071355022

Richard M. Levich, International Financial Markets, McGraw Hill,1998

S. Charles Maurice, Christopher R. Thomas, Managerial Economics, McGraw-Hill, 1999

Covey T. Oliver, Edwin B. Firmage, Christopher L. Blakesley, Richard S. Scott, Sharon A. Williams, The International Legal System, Foundation Press 1995

Richard A. Posner, Economic Analysis of Law, Little Brown, 1992

Hal S. Scott, Philip A. Wellons, International Finance - Transactions, Policy and Regulation, Foundation Press, 1997

Alan C. Shapiro, Multinational Financial Management, Prentice Hall, 1996

Anant K. Sundaran, J. Stewart Black, The International Business Environment, Prentice Hall, 1995
 
 

Readings:

1. - General readings

Dorfman, Chapters 1, 2, 3 4, 7, 8, and 9 - introduction to the law and economics of insurance

Maurice and Thomas, Chapter 18 - Decision making under risk and uncertainty

Chorafas, Chapter 1 - Implementing chaos theory in financial markets
 
 

2. - Product risks

Posner, Chapter 6 - Tort law

Cooter and Ulen, Chapter 9(2) - Product liability, Chapter 2(Appendix) - The economics of risk and insurance

Gilson, Black, Chapter 26 - Successor liability of the acquiring company
 
 

3. - Environmental risks

Oliver, Firmage Chapter 6 - International protection of the environment

Schaffer, Earle, Augusti - Chapter 22: Environmental law

Bhandari and Sykes Chapter 6 - International conflict and coordination in environmental policies
 

4. - Corporate crises

Beauchamp, Chapter 4 - Acceptable risk
 

5. - International financial risks

Shapiro, Chapters 8, 9 10 and 11 - Foreign Exchange risk management

Scott and Wellons, Chapter 4 - Capital adequacy, Chapter 16 - Swaps, Chapter 17 - Offshore mutual funds

Hull, Chapters 1, 2 and 3 - Forward and futures contracts, Chapter 5 - Swaps, Chapters 7 and 8 - Options, Chapter 18 - Credit risks
 

6. - Value at risk

Levich, Chapters 16 and 17 - Measuring and managing the risk in international financial positions and regulatory issues
 
 

1. - Environmental risks

Sundaran and Black Case 11 - Union Carbide and Bhopal
 

2. - Corporate crises

Monks and Minow Chapter 6 - Case studies: corporations in crises
 

3. - International financial risks

Shapiro, Chapter 11 - Case studies, p. 326 ff
 

4 - Novel financial instruments

Laprès, Le marché boursier de l'électricité aux Etats-Unis
 
 

1. - Product liability

 

1.1. - Sources of law

Convention on the law applicable to product liability (1973)

 

1.2. - Stories in the news

Union Carbide, IBM Lose Contributory Negligence Defense in 'Bellwether' Birth Defects Suit

$145 billion tobacco award upheld

Liability of a skier for death in a crash on the slopes

Along for the Ride - Ford/Firestone liability

Judge Orders Massive Ford Recall

Jury Tags Chrysler for $83 Million

Copyright Copyleft Information

Jury's $785M Verdict in Lockheed Case Reversed

Dairy Queen liability

SAP sued for firm's collapse 9/98

US Sup Ct - GM truck case

 

1.3. - International environmental law

Foundation for international Environmental Law & Development

Globelaw International Environmental Law and Multilateral Conventions

CIEL Home Page

Environmental Law, Endangered Species Law, Federal Law, International Law, Toxic Torts Law, Juris Doctorate - Index

ASIL Electronic Resource Guide International Environmental Law

 

 

2. - International financial risk management

 

2.1. - Macro-economic risk managment

BIS papers

St-Louis Fed - on Glass-Stegall reform

"The Insider: What I Learned at the World Economic Crisis." Joseph Stiglitz Article: Economic Studies: Brookings Institution

Why the interest in reforming the international financial system

Rethinking the International Monetary System: An Overview

Building an Infrastructure for Financial Stability: An Overview

 

2.2. - International organizations

Bank for International Settlements

The World Bank Group

International Monetary Fund Home Page

IOSCO

ISDA

 

2.3. - International finance law links

Enrique Carrasco's Page on Intenational Financial Law

Securities law: WWW sites and other internet resources

U.S. Banking Law

US Securities and Exchange Commission

 

2.4. - Derivatives

An Introduction To Futures And Commodity Trading

Basic facts about futures trading

Options Strategy Guide

Educational Information on Derivatives

Welcome to the

RiskMetrics(TM)

 

2.5. - Hedge funds

Hedge Funds: What Do We Really Know?

Hedge Funds and Financial Market Dynamics

 

3. - VAR

3.1. - General

Value at Risk : a quick primer

Risk Measurement: An Introduction to Value at Risk

VAR - New approaches to risk management

Failures in risk management

Riskmetrics

 

3.2. - Cases

Case Studies

Orange County Value-at-Risk Case

 

3.3. - Porfolio investment tool

Value at Risk

Anomalies in Black and Scholes

Managing derivatives in the 90s

The Use of Value at Risk by Institutional Investors

 

3.4. - Consultants

Risk Assessment & Policy Association

Contingency Analysis: Subjective Value-at-Risk

ACCURISK LLC - Interactive online high-dimensional Modeling, Monte Carlo, Algorithms, for financial securities and portfolios

EXVaR Risk Management: Risk Software suite - Chosen By Paris Bourse to manage Financial Risk in Real-time with Full Monte-Carlo VaR

All About Value at Risk