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Role of International Finance

Manager
Fund Raising
Investment Decision

Dividend Decision


Role in International Finance
• Similarly Fund raising in International
market
• Taking investment Decision
• Minimizing risk
• Hedge against foreign exchange
exposure
Risk to Handle in Foreign
operation
• Default Risk
• Political Risk
• Economic Risk
• Piracy, sea pirates, accidents
insurance
• Financial Risk
• Business Risk
• Foreign Exchange Risk
Risk Minimization
• Understanding various risk
minimizing instruments
• Understanding the risk associated
with foreign exchange rate
fluctuation

Understanding of Risk
Associated with the Exchange
risk
• Transaction Risk
• Operating and Strategic Risk
• Translation Risk

Roles are different according to
Nature of Industry
• Banking and Investment Financial
Industry

International Finance Manager/
Portfolio Manager
• Understanding the Risk
• Forecasting

• Application of Derivative in Risk


minimization
• Understanding international market
trend
• Understanding the competition
• Managing the subsid
• Understanding of International
Monetary System
• Understanding of Foreign Exchange
Market
• Understanding nature and
measurement of Exposure and Risk

Responsibilities of Finance
Manager
• To keep update of significant
environmental changes
• To understand and analyse the
complex interrelationships between
relevant environmental variables and
corporate responses
• Adapt the finance function to significant
changes in firm’s own strategic
posture
• To take stride past failures and mistakes
to minimize their adverse impact
Major Challenges
• Integration , boundaries between
domestic and international market
getting blurred
• Domestic market are opened up for
foreign borrowers borrower are
allowed to access foreign financial
market.
• Functional Integration “ everybody
does everything”
• Securitization and disintermediation

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