[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-199603-en":3,"doc-seo-199603-105":31,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},199603,962075006959,"Anda","https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297",4,"Exam","BUS 35131 - Cases in Financial Risk Management (Course Overview and Materials)","Elective course overview for BUS 35131 focused on the foundations of modern corporate financial risk management and how it can create value under real-world market frictions. Covers allocation and measurement of market, credit, and liquidity risk, including VaR and Expected Shortfall, backtesting, and risk metric trade-offs. Explores hedging and insurance using derivatives, enterprise-wide risk management systems, and strategic financial risk management. Includes course requirements, readings, administrative notes, and expectations for analytical tools like Excel and Monte Carlo methods.","BUS 35131 Winter 2017  \nPietro Veronesi Office: HPC409 (773) 702-6348 pietro.veronesi@  \nCASES IN FINANCIAL RISK MANAGEMENT  \nCourse Overview  \nThis elective course covers the foundations of modern corporate financial risk management. The traditional view of financial risk management allocates risks in categories and looks at the methodologies to measure and manage such risks. The modern view of corporate financial risk management integrates financial risk management solutions with long term corporate goals. How does financial risk management create value for the corporation? What are the costs? When is it optimal to engage in financial risk management and when is it best to actually not do it? Indeed, under perfect capital markets, financial risk management does not create value. Yet, evidence shows 95% of Fortune 500 firms and over 60% of all non-financial firms actively use derivatives to manage financial risk. What are the market frictions that make financial risk management a strategic tool to achieve long-term corporate goals?  \nThis course uses a mix of lectures and case studies to provide students with a thorough understanding of the benefits and costs of corporate financial risk management. We cover both financial institutions and non-financial institutions and discuss a wide range of topics, including (i) the analysis of market risk (i.e. FX risk, interest rate risk, commodity risk etc ), credit risk, and liquidity risk; (ii) measures of financial risk, such as Value at Risk, Cash-flow at Risk, Credit at Risk, Liquidity VaR, Expected Shortfall, Backtesting, as well as their pros and cons; (iii) optimal hedging and insurance through financial derivatives, such options, futures, and credit derivatives; (iv) the benefits and costs of financial risk management, through derivatives and diversification; (v) the logic behind enterprise-wide financial risk management systems and their relations to long-term corporate strategy; (vi) strategic financial risk management and financial innovation. The use of numerous case studies will help cement the topics covered, as well as provide elements of class discussion.  \nAt the end of the course, students will be comfortable with the costs and benefits of corporate financial risk management, will understand the potential pitfalls in numerous measures of risk, and will see the benefits and costs of using financial derivatives as instruments to hedge financial risk. Students will also learn the steps required to set up an effective enterprise-wide risk management system for both financial and non-financial institutions. For these reasons, this course will especially benefit students with career goals in investment banking, sales and trading, financial risk management, corporate treasury, as well as consulting.  \nIn terms of requirements, students should familiar with topics covered in investments (35000) and corporation finance (35200) . A good knowledge and understanding of  \nderivatives and derivative pricing will be useful, but not strictly required. Case analysis and homework assignments will also require the use of Microsoft Excel spreadsheets. I will make available several spreadsheets implementing Monte Carlo simulations for risk measurement and asset valuation. The course is analytical in nature and therefore requires familiarity with calculus, statistics and probability.  \nRequired Material  \na) A packet of cases and readings (in chalk)  \nb) Rene’M. Stulz, Risk Management and Derivatives, South Western, 2003, ISBN 0 538 – 86101 – 0;  \nor  \nc) Philippe Jorion, Value at Risk, 3rd Ed., McGraw Hill, ISBN 978-0-07-146495-6  \nOptional Material  \nThe following books are all excellent, and cover the material from different perspectives. The two books on financial risk management (Jorion and Smithson) are two classic books written by leading experts. I found both of them very useful.  \n(A) Financial Risk Management  \na) John Hull, Risk Management and Financial Institutions, 2012, 3rd Ed","cbCaiombFQ04tTOk","https://ap.wps.com/l/cbCaiombFQ04tTOk","pdf",153189,2,1,11,"English","en",105,"# Course Overview\n## Risk management value, costs, and market frictions\n## Course structure: lectures and case studies\n# Topics Covered\n## Risk analysis: market, credit, liquidity\n## Risk measures and model evaluation\n## Hedging and insurance with derivatives\n## Enterprise-wide risk management systems\n# Course Requirements and Materials\n## Required readings\n## Optional books\n# Administrative Notes\n## Office hours and contact\n## Teaching assistant and review sessions","[{\"question\":\"What is the central idea of modern corporate financial risk management in this course?\",\"answer\":\"Modern corporate financial risk management links risk management solutions to long-term corporate goals, explaining how value creation depends on market frictions rather than perfect capital markets.\"},{\"question\":\"Which types of risk and risk measures are emphasized?\",\"answer\":\"The course covers market risk (e.g., FX, interest rate, commodity), credit risk, and liquidity risk, along with measures such as Value at Risk, Cash-flow at Risk, Expected Shortfall, and backtesting and their pros and cons.\"},{\"question\":\"How are derivatives used in the course?\",\"answer\":\"Students examine optimal hedging and insurance using options, futures, and credit derivatives, and evaluate both the benefits and costs of financial risk management through derivatives and diversification.\"}]","BUS 35131 - 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