Hedging international risk: Renault and risk management
Summary :
Table of Contents
- Introduction: Information about the business model used by Renault.
- The kinds of risk Renault is exposed to.
- Operational risks.
- Financial risks.
- Other risks.
- Analysis of the tools adopted in risk management by your company.
- Analysis of the effectiveness of use of the hedging techniques with the derivatives.
- Derivatives and operational risk management.
- Derivatives and financial risks.
- Sources.
Abstract
renault is a French vehicle manufacturer producing cars, vans, buses, tractors, and trucks. The group is well known for its motor racing (through renault Sport department), revolutionary designs (for example: Vel Satis, Avantime, Megane) and concepts (namely the Espace, the first monospace to be developed). renault distributes its vehicles through primary networks (dealers, branches belonging to the renault group's business distribution unit, approved repairers) and secondary distribution network (subdealsers). For a decade, renault's growth strategy is mainly based on internationalization (outside Europe). Indeed, even if it is the leader on the European market, it needs to conquer the American and, above all, the Asiatic markets. That's why the group is present in "risky" countries such as Chile and Turkey. Besides, renault holds 20.74 % of the capital of AB Volvo (Sweden), 44.3 % of Nissan (Japan), and 99 % of Dassia (Romania). renault also created renault Samsung Motors (South Korea) after buying Samsung Motors' operational assets, and has a partnerships with local companies in Russia (Avtoframos), China (Dongfeng), Iran (Idro), Columbia (SOFASA) and Italia (Fiat).
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