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Risk Management
RM-101, Section TH21
Financial Statement Analysis and Credit Risk Management
This comprehensive certificate program will help you build competencies in ratio analysis, forecasting, company valuation, and in preparing “pro forma” financials to reflect economic reality. Students will work in teams to analyze competitor company pairs and deliver mock investor presentations and gain an understanding of credit risk management, including risk measurement, credit risk mitigation tool, and distribution of credit risk including structured products. Contemporary events in the news will be incorporated into each lecture. 45 hrs.
Not offered this semester
RM109
Risk Transfer to Financial Markets: Options, Futures and Other Derivatives
Prerequisites: Statistics, corporate finance, calculus, macro and micro economics
Recommended: Investment analysis
Students will learn how derivatives are used for hedging, arbitrage and speculation. The creation and trading of derivatives on an exchange will be examined. Most class time will focus on solving for equilibrium prices and learning price parity theorems of options and futures, which makes the course fairly technical. Through virtual electronic trading students will get the chance to implement conceptual tools such as profit and loss diagrams, option trading strategies, binomial trees, option Greeks, and the Black-Scholes formula. Students will learn how to minimize risk with futures through immunization, asset allocation, and duration matching. Some elements of financial engineering will also be presented, if time allows. Required text: Options, Futures and Other Derivatives, 7th Edition, John C. Hull. ISBN 13: 978-0-13-601586-4. 39.8 hrs.
Not offered this semester
RM110
Risk Transfer to Insurance Markets
This course examines risk transfer to insurance markets including both property and casualty, and life and health insurance. Classes will cover the variety of ways that risk transfer can occur both to insurance entities and from insurance entities (reinsurance and capital market structures). Among the types of insurance structures to be studied are insurance companies, captives, reciprocals, segregated cell structures, quota share, excess of loss, catastrophe bonds and how each of these structures may be utilized. The course will look at basic insurance elements and concepts to provide a framework for the insurance concept and an evaluation of efficiency with respect to pricing, terms and conditions, and various forms of risk facing a corporate risk manager. The goal of the course is to provide each student with a framework to use to evaluate business risk, and a working knowledge of the various insurance structures that are available to manage the risk exposures.
Students are expected to attend each class and will be required to work collaboratively in groups in the classroom and outside of it to prepare two presentations. Required text: Introduction to Risk Management and Insurance, Mark Dorfman, 9th Edition. 39.8 hrs.
Not offered this semester
