Publicação
Navigating financial risk management in Royal Caribbean Group: a study of commodity price risk
| Resumo: | This work investigates the financial risk management (FRM) practises of Royal Caribbean Group (RCG), focusing on its management of commodity price. Using a combination of financial impact modelling and market valuation analysis, the study evaluates RCG's current hedging strategies, and its effectiveness in mitigating volatility, ensuring cash flow stability, and enhancing market confidence. Findings reveal that while RCG's existing commodity risk strategy effectively reduces the downside risk, it also limits potential gains when there are favourable market conditions. Recommendations include adopting alternative hedging instruments, such as collar options. |
|---|---|
| Autores principais: | Silva, Jéssica Filipa da Cunha e |
| Assunto: | Financial risk management Market risk Hedging strategies Corporate finance Financial instruments Fuel price risk |
| Ano: | 2025 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This work investigates the financial risk management (FRM) practises of Royal Caribbean Group (RCG), focusing on its management of commodity price. Using a combination of financial impact modelling and market valuation analysis, the study evaluates RCG's current hedging strategies, and its effectiveness in mitigating volatility, ensuring cash flow stability, and enhancing market confidence. Findings reveal that while RCG's existing commodity risk strategy effectively reduces the downside risk, it also limits potential gains when there are favourable market conditions. Recommendations include adopting alternative hedging instruments, such as collar options. |
|---|