Free Risk Management Calculator
Advanced Technology has allowed the managers to look
at the best scenario of managing a risk by the use of a
calculator. A free risk management calculator calculates
set of risk measures, such as VaR, CVaR, dispersions,
and riskreward ratios. The calculator is useful for
decision making, risk engineering, risk measurement, and
risk management tasks.
The calculator provides a "what if" scenario if an
alternative has been used to handle the risk and giving
the result of the alternative net of any risk management
costs. The calculator also provides revenue patterns for
comparisons purposes. It allows the manager to determine
whether to take the risk or to forego. The following are
steps on how to use a free risk management calculator:
1. Inputs- these consists of standard prices in the market
and current loan rate.
2. Risk Management Toolbox – the toolbox has both
insurance and marketing products available. The
insurance options include yield and revenue products.
3. "What if?" Scenarios – provides the future price and
yield levels of the activity being calculated. Any
value maybe calculated that will determine the gains
or losses from the strategies chosen.
4. Additional Scenarios – allows the organization to
use a base scenario without any risk management
tools in place. Selling futures are compared to
buying puts. This introduces basis risk and eliminates
the loan rate.
Let your actions in handling future risk management be
handled by a free risk management calculator.
Identify and manage threats that would create impact
or bring the organization down before it’s too late.