BUS-F525 Corporate Financial Risk Management

• 7 weeks
• 1.5 credits
• Prerequisite(s): BUS-F520

Over the last few decades, the process known as financial risk management has become one of the most important functional responsibilities of CFO’s and corporate treasurers around the world.

We will explore characteristics of multinational corporations. We will address the distinct financial risks such as foreign exchange risk and interest rate risk that multinationals face and the financial tools they use to manage these risks. In particular, the course examines foreign exchange markets, related derivative securities such as currency forwards, futures, options, and interest rate swap and cross-currency swap contracts. We will also examine various hedging strategies using these instruments and how they can be applied to manage and neutralize risk.

The instruction consists of lectures, class discussions, individual assignments, group case assignment, readings and exam. Course textbook: Eiteman, Stonehill & Moffett (ESM), Multinational Business Finance, 14th Edition, Pearson Education.