Financial Engineering and Corporate Strategy

Catalog description

This course provides an overview of some of the important issues and problems encountered in recognizing exposures to risk in both financial and non-financial firms, and provides students with a strategic decision-making perspective. Considerable importance will be placed on how exposures to risk affect the firm, and how risk exposures can be re-engineered to enhance firm value. An overview of financial markets and the major sources of risk exposure to the firm will be provided. Measurement of risk exposures will be discussed and various methods of managing and controlling risk will be explored. Tools of the financial engineer 'futures, options, swaps, and other derivatives' will be explained and applications will be demonstrated.