Advanced Corporate Finance (FINC 711)
Offered By:
Management Technology Faculty
Description
Risk Management is of exceptional importance in today’s economic world of globalization with lots of fluctuations in all market parameters. The recent financial crisis may be used as an example. Within this course, the need for an appropriate, company wide risk management system is stressed and the risk management process is explained.
Almost all big corporations are acting as multinationals. Taking advantage of international diversified investments as well as the usage of worldwide funding opportunities is common business practice. On the other hand, primarily because of the different currencies, corporations with international activities face the risk of exchange rate changes. The management of exchange rate risk is selected as an example to explain the tools and techniques of modern risk management approaches. Within this course, these risks and ways to deal with them will be described. Value at Risk will be introduced as the most recent risk assessment tool.
Finally, the course will focus on techniques of currency risk management, primarily by using Derivatives.