Analyze credit risk assess default probabilities, and finally assess and monitor risk exposure of freight derivatives using VaR.

Reflective Practice Report

Familiarize yourselves with the concepts of shipping derivatives and risk managements.

In particular, explain how to: execute a freight hedging strategy in dry and wet bulk shipping operations, use freight options in risk management, manage bunker risk in shipping operations.

Analyze credit risk assess default probabilities, and finally assess and monitor risk exposure of freight derivatives using VaR.