July 12 – 23, 2021
The course offers students a set of practical instruments to identify, analyze and mitigate financial risks.
This course focuses on enterprise risk management (ERM) in turbulent economics. It covers most of recent changes in compliance, risk management and corporate governance. With a set of lectures and workshops on the system of ERM, the course helps to evaluate its efficacy of intra-corporate corporate governance, identify, analyze, and evaluate different types of corporate risks, as well as prepare and interpret financial reports. The course is taught by Vasilisa Makarova, Jeff Downing, and Victor Krakovich.
The main idea of this course is to combine different areas of financial risk management. My section of the course includes studying various models and methods that help assess risks, as well as testing them on real-life data. For example, you will learn how to use models for predicting defaults at the micro and macro levels
My part of this course focuses on compliance with International Financial Reporting Standards. A strong understanding of IFRS is useful for ensuring conformity with financial-reporting requirements in countries around the world. During the course, we will cover such topics as the basic principles of IFRS, financial instruments, revenue recognition, property, plant and equipment and many more
Why Choose This Course?
Benchmarking of corporate risk management is at the heart of this course. Students will discuss, for example, what stakeholders expect from risk management, how risk management reduces the consequences of short-termism, or how to build a corporate risk oriented culture. In addition to modern theoretical approaches, the course offers a significant number of practical tasks. Using a real-world data set, students will apply financial modeling in Excel and statistical packages (SPSS and STATA).
Risk management and company survival
Patterns of risk management
Financial reporting and compliance
Transparency and clearness of management results
Models of internal audit/control/risk management effectiveness evaluation
Maturity of internal audit/control/risk management
Preparing and interpreting corporate financial information
Skills and Competences
Upon completing this course, students should have the following skills and competences:
- А thorough understanding of corporate governance and ERM – including the role of internal audits, internal controls, and risk-management departments
- The ability to design and evaluate the efficacy of corporate governance and ERM
- The ability to identify, analyze, and evaluate corporate risks
- The ability to prepare and interpret corporate financial information
Applicants should be familiar with financial math, basic knowledge of risk management, time value of money, probability models.
The course combines theoretical and practical components.
Individual project work which includes case study, problem solving, financial modeling, developing a presentation.
Final Grade Background
Students will be given four tasks (case study, problem solving, financial modeling, presentation). The final grade will be computed according to performance of each of the tasks. In order to complete the course students have to attend no less than 70% of classes.
Recommended Reading List
Massa, Massimo & Wu, Fei & Zhang, Bohui & Zhang, Hong. (2015). Saving Long-Term Investment from Short-Termism: The Surprising Role of Short Selling.
Choi, Jongmoo & Mao, Connie & Upadhyay, Arun. (2013). Corporate Risk Management under Information Asymmetry.
Brochet, Francois & Loumioti, Maria & Serafeim, George. (2012). Short-Termism, Investor Clientele, and Firm Risk.