Role of International Finance Manager

Fund RaisingInvestment DecisionDividend 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