Anjos, FernandoOliveira, Maria Margarida Brito de2025-08-112025-08-112025-01-212024-12-17http://hdl.handle.net/10362/186306This work investigates the financial risk management (FRM) practises of Royal Caribbean Group (RCG), focusing on its management of interest rate risk. Using a combination of financial impact modelling and market valuation analysis, the study evaluates RCG's current hedging strategies, including interest rate swaps, and their effectiveness in mitigating volatility, ensuring cash flow stability, and enhancing market confidence. Findings reveal that while RCG's existing strategies effectively reduce the downside risk (swaps lower volatility of interest expenses by 11.2%, for the 12 years), they limit potential gains when there are favourable market conditions. Recommendations include indexing new loans and their corresponding swap agreements to EURIBOR instead of SOFR for improved alignment with macroeconomic trends.engFinancial risk managementMarket riskHedging strategiesCorporate financeFinancial instrumentsInterest rate riskmaster thesis203961390