Corp Risk Management

Catalog description

Corporations face a variety of risks including interest rate risk, commodity price risk, foreign exchange rate risk, counter party default risk and political risk in addition to the usual business risks of their chosen fields of operation. This course analyzes the corporate decision to hedge (or not to hedge) focusing on how these decisions maximize shareholder value. The course explores ways in which firms manage their exposure to product market and financial risk and provides a balanced treatment of commodity price, interest rate, and currency risks. Topics include swaps, financial futures, FRAs, options and other recent innovations in the derivatives markets. The issue of counter party default risk and risk management approaches such as VAR (value-at risk) are also studied.