Overnance and Risk in Finance, Term Project 1

Russia, Company Sukhoi

1.Describe the Corporate Governance Code used and compare to that of the UK
2. Analyse the Business Environment in your chosen country, looking at areas like in Macro risk and Countryas risk rating.
3. Identify an event from the recent past relevant to risk assessment. This can be a nationalization of enterprises, hostile action by a government toward a specific firm or group of firms, an unscheduled transfer of power (coup, revolution, etc.), or a period of instability (unsuccessful revolt, terrorism, civil strife). Alternately, it can be the threat of instability or government action that never materialized. Identify an approximate time period where the events occurred.
4. This event could also be a Firm-specific risk
5. Gather as much evidence as possible from the year preceding the event. Decide whether news sources overestimated, underestimated, or correctly estimated the actual threat.
i · If the event came as a surprise, could this event have been anticipated given the facts you have gathered? If so, explain how. If not, describe what information would have been needed to make an accurate assessment beforehand.
i · If the event was merely a threat that was never realized, explain why the threat was exaggerated. What information or knowledge could have prevented the misunderstanding.
i · You are required to support your finding with the quantitative analysis and manipulation skills acquired in class.

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An individual report needs to be handed in on the data that you collected and the research findings.
The report should have the following structure
1. Title:
It should be concise and descriptive.
For example, the phrase, An investigation of . . .could be omitted. Often titles are stated in terms of a functional relationship, because such titles clearly indicate the independent and dependent variables. However, if possible, think of an informative but catchy title. An effective title not only pricks the readers interest, but also predisposes him/her favourably towards the report.
2. Abstract:
It is a brief summary of approximately 200 words (write it on a separate page). It should include the research question, the rationale for the study, the hypothesis (if any), the method and the main findings.
3. Content Page:
Write all the contents in a separate page (with the page number if necessary)
4. Introduction:
The main purpose of the introduction is to provide the necessary background or context for your research problem. How to frame the research problem is perhaps the biggest problem in proposal writing.
Unfortunately, there are no hard and fast rules on how to frame your research question just as there is no prescription on how to write an interesting and informative opening paragraph. A lot depends on your creativity, your ability to think clearly and critically and the depth of your understanding of problem areas.
However, try to provide a brief but appropriate historical backdrop. Then, provide the contemporary context in which your proposed research question occupies the central stage. And make sure you identify ”key playersand refer to the most relevant and representative publications.
The introduction generally covers the following elements:
1. State the research problem, which is often referred to as the purpose of the study.
2. Provide the context and set the stage for your research question in such a way as to show its necessity and importance.
3. Present the rationale of your proposed study and clearly indicate why it is worth doing.
4. Briefly describe the major issues and sub-problems to be addressed by your research.
5. State your hypothesis or theory, if any. For exploratory or phenomenological research, you may not have any hypotheses.
(Please do not confuse the hypothesis with the statistical null hypothesis.)
6. Set the delimitation or boundaries of your research in order to provide a clear focus.
5. Methods:
The Method section is very important because it tells the examiner how you plan to tackle your research problem. It will provide your work plan and describe the activities necessary for the completion of your project.
The guiding principle for writing the Method section is that it should contain sufficient information for the reader to determine whether methodology is sound.
You need to demonstrate your knowledge of alternative methods and make the case that your approach is the most appropriate and most valid way to address your research question.
Furthermore, since there are no well-established and widely accepted canons in qualitative analysis, your method section needs to be more elaborate than what is required for traditional quantitative research. More importantly, the data collection process in qualitative research has a far greater impact on the results as compared to quantitative research. That is another reason for greater care in describing how you will collect and analyze your data.
6. Discussion and Analysis:
It is important to explain and analyse the research topic. You may need to use charts and graphs to illustrate the data collected.
It is very important to remember, that will be assessed mainly on how to use the statistical measures (both quantitative and qualitative).
Corporate Governance Practice
Event Identification
Risk Assessment and Management
ERM
Ethical Considerations
Conclusions
7. Conclusion
8. Bibliography
9. Supplementary Section: Any extra material that you find relevant
Most students suffer from the following problems:
i?? Lacking organization and structure
i?? Lacking focus, unity and coherence
i?? Being repetitive and verbose
i?? Failing to cite influential papers
i?? Failing to critically evaluate cited papers
i?? Citing irrelevant or trivial references
i?? It is also helpful to keep in mind that you are telling a story to an audience. Try to tell it in a stimulating and engaging manner. Do not bore them (Remember: teachers are human beings too.)
Using Microsoft Excel, Minitab or STATDISK is acceptable to perform statistical calculations. i.e. students do not need to show how they found the results, as they can write and analyse the results directly in the report)

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Things that we have covered in class and that need to be included in report:

-Theory of Corporate Governance
-Agency problems
-Shareholder expropriation
-Separation of ownership and control (Berle-Means hypothesis)
-Corporate control in different countries
-Various national and international codes of corporate governance (And critically review their effectiveness)
-Recent regulatory changes
-Role of gatekeepers (importance of them being independent, their role in preventing fraud, etc)
-board composition and structure in multinational corporations
-different definitions and classifications of risk
-Risk assessment and pooling
-Risk management
-Monte Carlo simulation (very important!)
-Decision trees, importance and analysis