Risk Management and Investment Decisions in Shipping Industry

Abstract:

As an inherently volatile industry, shipping is characterized by a high risk – high return profile, making its rates and prices difficult to forecast. In shipping industry, investment decisions are taken on a proper risk measurement and management basis, since they are long-term decisions with important financial implications. Taking in consideration the importance of risk measurement and management within the investment environment, the purpose of this study is to provide a proper risk measurement solution for freight-rate risk.