This course examines how corporations and investors make use of the insights and tools of risk management, by engaging students in an active discovery of the principles of risk management. The risk management process in the current economic environment is becoming an increasingly important tool in the management of business and personal financial health.
The course begins with the quantification of uncertainty and an overview of the different types of risk (business, financial, liquidity, market price, interest rate, credit, foreign exchange, investment) that the modern financial manager faces, in the context of an enterprise risk management process. The course focuses on the ways in which the different categories of risk affect various aspects of financial management such as capital budgeting, corporate valuation, portfolio management etc.
The risk management process involves identification of risks and associated potential costs, analysis of the causes of risk of financial loss, determination of various strategies to treat risk, selection of strategies appropriate to the goals and objectives of the business, implementation of the selected strategies, management and monitoring of results.
On successful completion of the course students will be able to:
