Learning objectives
The first and second module of the course thus aims to examine both the main risk factors, and the techniques required for their management. The analysis is developed with reference to the following risks: interest rate risk, exchange rate risk and commodity risk. At the end of the course, students will have acquired:
• the knowledge necessary to understand the main financial risks to which a non-financial firm may be exposed, as well as the techniques required for the management of these risks;
• the ability to apply the acquired knowledge in order to successfully carry out exercises and case studies on the management of financial risks. Exercises and case studies will be proposed in the second module of the course;
• the critical capacity (independent judgment) to assess independently the problems associated with exposure and coverage of financial risks in non-financial firms;the ability to use a consistent technical language appropriate to communicate with CFOs, treasurers and business advisors with reference to the problems associated with the management of financial risks;the ability to learn through a logical method, which consists of identifying the problems and critical analyzing the solutions, as well as the ability to work in teams.
At the end of the course, students will have acquired:
a. Knowledge and ability to understand
A goal of the course is to study how corporate ownership is contended in developed financial markets, and especially in the Italian market. The rules by which the shareholders exercise their property rights and the rules by which the bondholders and other lenders influence corporate governance will be examined.
b. Ability to apply knowledge and understanding
The course aims to present and evaluate the effects of corporate governance instruments, management incentives, takeover resistance etc..
c. Critical capacity (independent judgment)
The course aims to develop a critical attitude towards corporate governance, the role of banks and financial markets in enterprise management and control and banking governance.
d. Ability to communicate
The course aims to train students to interact with entrepreneurs, banks, managers and business advisers with regard to the issues of corporate governance and value creation.
e. Ability to learn
The course aims to provide students with the key elements to develop, implement and/or evaluate corporate choices with a view to creating value for stakeholders
Prerequisites
- - -
Course unit content
MOD. 1
• Multinational corporation
• Offishoring and reshoring
• Risk Management
• Sovereign risk
• Other risks in international trade
• Managing contract and transport risks
• Managing sovereign and credit risks
• Exchange rate market
• Exchange rate risk: transaction exposure
• Exchange rate risk: operational exposure
• Managing exchange rate risk
MOD. 2
• Identification, measurement and management of interest rate risk
• Interest rate exposure in non-financial firms: variables, control instruments and management
• Instruments for the management of interest rate risk
• Exercises and case studies on issues related to exposure and hedging of interest rate risk.
• Oil futures and oil derivative futures: description and purposes
• Exercises and case studies on issues related to exposure and hedging of oil price risk.
MOD. 3
Financial markets and intermediaries contribute to determine the enterprise governance solutions.
People having rights included in company liabilities can strongly influence significant decisions regarding corporate strategy, the choice of management and other important topics. The financial market is the place where the corporate ownership is disputed, and where corporate governance changes are defined.
Full programme
- - -
Bibliography
MOD.1
Teaching materials are available at the photocopy office of the Economic Department.
MOD. 2
Options, Futures, and Other Derivatives, J. Hull, Pearson
Case studies and exercises distributed in the classroom by the teacher.
MOD. 3
- LA PARTE TERZA «LA CORPORATE GOVERNANCE» di Misani N. nel libro di Pivato S., Misani N., Ordanini A., Perrini F., 2004, Economia e gestione delle imprese, Egea, Milano;
- IL CAPITOLO 3 «CORPORATE GOVERNANCE E MERCATO DEI CAPITALI. UN'ANALISI ECONOMICA DELLA REGOLAMENTAZIONE DEI TAKEOVER» di Panunzi F. e Polo M. nel libro di Airoldi G. e Forestieri G., 1998, Corporate Governance. Analisi e prospettive del caso italiano, Etas, Milano;
- IL CAPITOLO «STOCK OPTION E QUALITA’ DEI PIANI DI INCENTIVAZIONE» di Pavarani E. nel libro a cura di Regalli M., 2002, Stock option e incentivazione del management, Il Sole 24 Ore, Milano;
- IL LIBRO «CORPORATE GOVERNANCE» di Brogi M., 2016, Collana Pixel, Egea, Milano;
- IL CAPITOLO 1 «LA CRESCENTE IMPORTANZA DELLA GOVERNANCE BANCARIA: UN’ANALISI ECONOMICA» di Colombo L. e Piccolo S. dell’OSSERVATORIO MONETARIO 1/2016 dell’ASSB, Associazione per lo Sviluppo degli Studi di Banca (www.assbb.it).
Teaching methods
MOD. 1
• Knowledge and understanding: lectures
• Applying knowledge and understanding: exercises
• Making judgments: during this module, students will be encouraged to identify strengths and weaknesses of financial derivatives
• Learning skills: for each topic the main problem to be solved will be introduced, and then the solutions adopted will be critically analyzed
• Communication skills: the teacher will illustrate
the meaning of the most common terms used by the financial community.
MOD. 2
• Knowledge and understanding: lectures
• Applying knowledge and understanding: exercises
• Making judgments: during this module, students will be encouraged to identify the optimal solutions to adopt for a proper management of financial risks
• Learning skills: for each topic the main problem to be solved will be introduced, and then the adopted solutions will be critically analyzing
• Communication skills: the teacher will illustrate
the meaning of the most common terms used by the financial community.
MOD. 3
Acquisition of knowledge: lectures.
Acquisition of the ability to apply knowledge: case studies and exercises.
Acquisition of independent judgment: during this course, students will be encouraged to identify strengths and weaknesses of different models and solutions.
Acquisition of learning skills: each topic will be addressed first, explaining the problem to be solved, and then critically analyzing the possible solutions.
Acquisition of technical language: the teacher will illustrate the meaning of the most common terms used by the financial community.
Assessment methods and criteria
Written or oral test (chosen by the student).
Partial tests are possibile.
The written Examination will be of 1-hour and 30-minute duration
MOD. 1
The final score relative to the first module of the "Risk governance and management" course is equal to 10/30 and will be calculated as follows:
The knowledge will be tested with 1 closed-ended question, assessed 1 point
The ability to apply knowledge will be tested with 1 exercise, assessed up to 4 points
The ability to communicate with technical language will be tested through 1 closed-ended question about the meaning of terms used by experts, assessed 1 point.
The autonomy of judgment and the ability to learn will be verified with 1 open-ended question, evaluated up to 4 points*.
MOD. 2
The final score relative to the second module of the "Risk governance and management" course is equal to 10/30 and will be calculated as follows:
Knowledge will be tested with 1 closed-ended question, assessed 1 point
The ability to apply knowledge will be verified with 1 exercise, assessed up to 4 points
The ability to communicate with technical language will be tested through 1 closed-ended question about the meaning of terms used by experts, assessed 1 point.
The autonomy of judgment and the ability to learn will be verified with 1 open-ended question, evaluated up to 4 points*.
MOD. 3
The assessment, aiming to test the ability to communicate using technical language, will be made through 2 questions. The first (theoretical) question evaluates the acquisition of knowledge and understanding, while the second question, with application content, tests the acquisition of learning skills, the acquisition of the ability to apply knowledge and the acquisition of independent judgment. Each question will be evaluated up to 5 points.
Honors, or distinction, will be awarded to students who in addition to achieving full marks, demonstrate overall systematic knowledge of the subject, outstanding ability in applying knowledge and independence of thought, and excellent writing skills in the case of a written exam paper or excellent communication skills in the case of an oral examination.
Devices such as smartphones, smartwatches, tablets, etc. are strictly forbidden.
Examination results will be published on ESSE3 and students can look at their papers by making an appointment with the professor.
Other information
- - -
2030 agenda goals for sustainable development
- - -
