Learning objectives
Over recent years, due to the process of integration and globalisation of markets, a growing risk attributable to the trend of the financial markets is increasingly perceived by economic operators. <br />
In the light of this situation, the course aims to examine both the main risk factors and the techniques required for the correct management of the said risks. <br />
The analysis is developed with reference to the connected risks: <br />
Ø to interest rates, <br />
Ø to exchange rates <br />
Ø to price variations of key raw materials <br />
The course includes lessons and operational analyses carried out also with the help of witnesses.
Prerequisites
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Course unit content
Corporate Financial Risk Management: introduction to the problem <br />
• The assessment, measurement and management of interest rate risk. <br />
• Exposure to the interest rate risk in firms: decisive variables, control instruments and management logic. <br />
• Tools for managing interest rate risk. <br />
• Analysis and discussion in small groups of a company case study on problems connected with exposure to and coverage of interest rate risk. <br />
• The economic/competitive profile of the exchange risk <br />
• Transaction exchange risk: monitoring of exposure to risk and the concept of “risk” <br />
• Conventional instruments and derivative tools for exchange risk management <br />
• Exchange risk management <br />
• Analysis and discussion in small groups of a company case study on problems connected with exposure to and coverage of exchange rate risk. <br />
• Futures on oil and derivatives: description and purposes of use. <br />
• Analysis and discussion in small groups of a company case study on problems connected with exposure to and coverage of oil price risk. <br />
Full programme
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Bibliography
HULL J. C., Opzioni, Futures e altri derivati, Pearson Prentice Hall, Milano, 2006. <br />
<br />
CONTI C., Introduzione al Corporate Financial Risk Management, Pearson Prentice Hall, Milano, 2006 <br />
Teaching methods
The assessment concerns both the individual results produced during the field project and the oral examination covering the theoretical and methodological issues dealt with during the course. <br />
The project will be assessed mainly on the contribution given in terms of interpretative abilities, and the ability to identify causal links between phenomena, and that of critical analysis of problems as well as the ability to understand and represent the links between theoretical and operational aspects. Methods of expression and completeness of the information gathered and processed will also be assessed. <br />
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Assessment methods and criteria
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Other information
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