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EN
High-amplitude of changes in foreign exchange markets had often a negative impact on the financial results of Polish exporters in 2008-2009. The design of adopted financial instruments and the height of the security show insufficient internal control over the implementation of the exchange rate risk protection policy in public entities, where financial loss has repeatedly exceeded the expected benefits. Most of the serious irregularities in this aspect came out of speculative transactions of senior or middle management staff and errors caused by faulty estimates, or insufficient knowledge about the design of derivatives. The text refers to the above situation, resulting from the need to thoroughly verify the current level of risk by the amount of securities derivatives in the company. The author's is to remind the regulations which would significantly reduce risk and demonstrate a mechanism whereby members of the internal audit committee under the board and external auditors, and the government of the company to protect the examined subject from the risk from improper use of the potential which undoubtedly are given by currency options. Support for active security policy is the indicator presented in Chapter 2. Extremely important is the fact that the meter will indicate the risk ex ante, before the consequences in the form of financial losses and an increase in long-and short-term debt
Zarządzanie i Finanse
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2012
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vol. 4
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issue 1
157-168
EN
Crisis of trust influences the increase in the risk of running a business. So, necessity for enterprises is the introduction of new risk management methods and instruments. Employment of modern management risk instruments can assure proper level of safety of included transaction. The article presents methods and modern instruments of risk management.
EN
The article examines insurance derivatives traded on capital markets, focusing on their structure and application mechanisms. The main function of these derivatives is to provide collateral funds in cases of natural disaster. Insurance derivatives don’t serve as an indemnification contract for financing a particular cedant’s losses, so substantial basis risk is a serious consideration. On the other hand, less moral hazard and the low cost of coverage play an important role. Enhancing risk diversification, derivatives make it possible to cover disaster risks previously considered non-insurable. That insurer and re-insurer financial results are stabilised by minimising the ruin probability in case of the rapid growth of loss-ratio is another advantage of insurance derivatives. Developing these instruments requires the insurance sector have an appropriate level of maturity and those participating not only be prepared financially and technologically but also possess the proper know-how.
EN
The article presents risk associated with currency fluctuations which can adversely affect exporters and importers. The solution to risk which currency fluctuations can cause is an effective use of derivative instruments such as forwards, futures, and vanilla options. The author presented practical examples of hedging techniques used by exporters and importers, employing these instruments. Likewise, the author explained the potential risks associated with the use of derivative instruments.
EN
This paper examines word-formation abilities in coining compounds and derivatives in preschool children and adult speakers of two languages (English and Polish) differing in overall word-formation productivity and in favoring of particular word-formation patterns (compounding vs. derivation). An elicitation picture naming task was designed to assess these abilities across a range of word-formation categories. Adult speakers demonstrated well-developed word-formation skills in patterns both typical and non-typical for their native language. In contrast with adult results, preschool children predominantly coined innovations conforming to the general pattern of their language: Polish children favoring derivation and American children favoring compounding. The results show that although children are improving their wordformation skills during the preschool years, they need much more experience to come to the mature proficiency in using the variety of word-formation patterns available in their language.
EN
The article presents methods to secure the exchange rate risk using currency options. In current changes in the currency market, difficult to foresee, these instruments best meet their role, giving companies a chance to effectively use the positive impact of currency exchange risk. The Authors showed the practical use of currency options in the risk management. Opportunities and risks arising from the purchase option were also presented.
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