The course would combine theoretical models with practical applications in risk and uncertainty, financing models, derivatives and hedging, and insurance in the marine business.
Objective
The main objective of this course is to provide students with an understanding of financial and insurance decision making in the context of sustainable marine business. The course specifically seeks to:
- equip students with risk management and analysis skills for the marine industry;
- examine various financing schemes in the marine industry;
- evaluate the effectiveness of the financial instruments for blue economy; and
- develop innovative hedging frameworks for marine business in Africa.
Content
This course discusses risk and uncertainty associated with marine business activities such as fisheries, shipbuilding and shipping, offshore oil/gas, marine construction, marine transport, dredging, marine and coastal tourism and marine business services. In addition, students would be exposed to the risks associated with instruments in the money, capital and derivatives markets.Furthermore students would examine the processes and types of traditional bank financing, equity, trade credit and leasing for marine business. Various types of hedging and risk diversification techniques will be discussed. Also topics such as forwards, futures and options contracts, interest rate futures contracts, duration hedging and swaps contracts would be discussed. The course would also cover the mitigation and management of the various sources of risks associated with marine business. Among the risks that will be discussed are aging fleets, losses of boats and yachts in windstorms, autonomous vessels, trade protectionism, underwriting losses, piracy and cyber threats in marine business. The unit will also discuss the management of such risks.
Mode of Delivery
The mode of delivery for this course would be a combination of lectures, presentations and seminars.