This class presents the fundamental concepts and techniques of risk management. This class examines the creation, valuation, and use of financial derivatives from the perspective of a non-financial corporation in managing firm risk. Specific focus is given to application in the energy industry, with detailed background on the risks faced by firms in the energy sector and the structured derivatives which are used to manage this risk.
This class is part of an ongoing series, open to both MBA and BBA students. This class teaches the basics of financial modeling using spreadsheets. I focus several fundamental building blocks, beginning with an understanding of how to conceptually frame a modeling problem and translate it into a flexible spreadsheet based calculation. Focus is placed on discounted cash flow valuation, but other models such as risk management, customer costing, and statistical analysis of output are also considered.
This course is a starting course for the fundamentals of finance. The following core topics will be covered (1) Value and the techniques for valuation of securities. (2) Corporate investment decisions and the fundamentals of capital budgeting. (3) Raising capital, capital structure, and financial planning. (4) Risk and Return and the nature of financial tradeoffs.