BUKD-F743 Financial Risk Management

• 12 weeks
• 3.00 credits
• Prerequisite(s): BUKD-F741

This course is an in-depth review of corporate financial risk management topics, especially with respect to how these areas are actually implemented in business organizations. Financial risk management usually focuses on the impact of uncertainty in key financial variables such as interest rates, foreign exchange (FX) rates and commodity prices. Related to this risk, derivatives such as forwards, futures, swaps and options are often used as hedging or risk management tools. As technology improves and corporations become more innovative, they will be able to isolate and break out more and different kinds of risk that then can be controlled and managed. At this time, risk management is a new area in financial management but is developing very rapidly, especially with respect to the concept of Enterprise Risk Management for an entire organization.

As a key element of the course, the focus is on the impact of various risk management and hedging strategies on the ultimate value of a company. To this end, the course spends considerable time in developing an understanding of the dimensions of risk management issues. Students will be organized into teams and will work through analyzing several "real-world" company cases. In addition, each team will be asked to develop a presentation for the rest of the class on a current risk management topic of their choosing.