The price of hedging credit risk

Jure Rogač; Franjo  Mlinarič

Jure Rogač
Franjo Mlinarič

Keywords: credit risk, credit insurance, rating

Abstract

Hedging of credit risk in the times of economic crisis, when 2/3 of domestic enterprises are late in payments (many of them ends up in bankruptcy), is an important competitive advantage. Our study is focused on the entire life cycle of debt-credit relationship in order to identify the most effective forms of insurance, from a legal and financial perspective. Therefore, we paid special attention to the analysis of the legal basis, respect for the business and financial principles and the risk of making the rating information.

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Author Biographies

Jure Rogač

Master student on Faculty of Economics and Business on University in Maribor, Slovenia
E-mail:jure.rogac@student.um.si

Jure Rogač BEc., is a Masters degree student on Faculty of Economics and Business on University in Maribor direction Finance and Banking. In July 2013 he graduated on the topic »Credit risk management with credit insurance« on Faculty of Economics and Business in Maribor, direction Business Finance and Banking. He is interesting in the fields risk management, business decision analysis, mone- tary-finance analysis and investment banking.

Franjo Mlinarič

Faculty of Economics and Business, University of Maribor, Slovenia
E-mail: franjo.mlinaric@uni-mb.si

Franjo Mlinarič, PhD is a senior lecturer at the Department of Finance, Universi- ty of Maribor (UM), Faculty of Economics and Business (FEB). His research is focused on capital structure, valuation and recently financial distress and restructu- ring issues. He is a founding member of Slovene Corporate Finance Association and has acted as external consultant for various companies and state institutions. Among other projects he prepared the valuation and the privatisation model for Slovene incumbent telecom company. He is an active consultant for University's of Maribor Entrepreneur Incubator and was the executive director of a start-up for advanced business intelligence solutions. Since 2007 he is a visiting lecturer at Kozminski Uni- versity in Warsaw and a chartered financial professional. He is also a member of the Justice Ministry examination commission for chartered court experts.

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