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Essay on John Hancock Risk Management
The mission and the policy of the Risk Management Program is to ensure that participating companies and agencies receive quality workers’ compensation, liability, federal civil rights, automobile liability, and property insurance coverage at reasonable rates by providing self-insurance, purchase of insurance, claims handling, and technical assistance in managing risk.
With an established expertise in financial risk management, the John Hancock Guaranteed & Structured Financial Products Group manages over $35.2 billion in assets (as of September 30, 2003) on behalf of its clients. This policy basically involves following;
- Creative and innovative product structures
- An understanding of our markets and clients
- Our analytical process
John Hancock believes that rigorous analytical approach is the key to their innovative solutions and success. The advantage of their analytical discipline is that it combines their risk management skills with the use of immunization strategies for asset/liability management and their ability to provide a variety of guarantees.
This approach is combined with a sophisticated knowledge of the marketplace and a comprehensive understanding of customer needs. They are able to tailor structures in a number of ways to fit client objectives. The expertise of their people, combined with the quality and accuracy of their technology-based modeling tools, is fundamental to the level of customization that they can offer clients.
Quite an impressive amount of recent academic research focuses on the idea that financial factors may cause or reinforce real fluctuations. In these models, it is typically a monetary policy shock that serves to lower the value of an asset which is used to secure a firm’s borrowing, thereby generating broad credit channel effects of monetary transmission. John Hancock empirically investigates the impact of corporate risk management strategies on this specific transmission channel.
A potentially important impact of corporate hedging is suggested by corporate finance models that generate hedge incentives by introducing asymmetric information into the credit markets............
