Reference no: EM133854412

Derivatives and Risk Management

Selected topic - Delta airlines

Assessment Task

The group needs to select one case from the following list and to conduct research on the background of the event, to understand the causes, consequences of the event and what can be learned from the event.
The Bankruptcy of Barings Bank (1995)
Sumitomo's $2 Billion Copper Market Scandal (1996)
The Allied Irish Banks Trading Scandal (2002)
The BAWAG Bank Fraud Case: Nine Executives Sentenced (2006)
The Bailout of American International Group (AIG) (2008)

The Jérôme Kerviel Trading Scandal: Société Générale's $7 Billion Loss (2008)
JPMorgan Chase's $6 Billion "London Whale" Trading Loss (2012)
Delta Airlines' $4 Billion Loss in Fuel Hedging (2016)
The Collapse of Archegos Capital Management: The Role of Total Return Swaps (2021)
Tsingshan Holding Group's $8 Billion Loss in Nickel Trading (2022)

In the report, the group is required to elaborate:

What happened to the main organizations that were involved in the selected event? (The background and what the story looks like). And what are the consequences to the organizations (e.g., direct monetary loss, loss of firm value in short term, damage to reputation, investors prospect for the industry/market, etc.).  Get Professional Assignment Help Service Now!

Which type of derivative products were used and how they exacerbated the risk?

Why did risk management procedure not work in this failure?

What lessons can be learned by the involved organizations?

How would you act if you were at the organization? Will you treat the firm's account (transaction) differently from your own account? (Group members can have different opinions)

Report format:

You must draft your report in an essay format with introduction and conclusion.

You are not required to use formulars or mathematical tools to conduct this assessment.