Course Objective
Financial risk management examines fundamental concepts in corporate and investment financial management with emphasis on derivative valuation, use and creation. The material begins by developing a comprehensive understanding of risk management elements. Forwards, futures, options, swaps, repos, and other derivatives are covered. Behavioral characteristics of these building blocks and their interactions are studied to illustrate the synthesis of desired results. Various financial engineering tools are employed to accommodate risk arising from commodity prices, interest rates, exchange rate volatility, and credit risk among other factors. The dramatic impact that financial risk management exerts on an organization's performance makes its mastery a necessary core competency for contemporary managers. Concluding applications address the development of suitable risk management policies.

Text
A variety of texts, articles, and Internet sources as assigned.

Internet
http://hilltop.bradley.edu/~arr/courses/627/syllabus.html

Office Hours
T 1:30-3:00 and Th online 2:00-3:00. If visiting my office is inconvenient, come to the online office hours. If none of the scheduled times are possible, email your request with some suggested alternate times and I will attempt to arrange it.

Prerequisites
All core courses (500 level) must be completed.

Research Project
Select a topic for a study of risk management. Research the topic completely, identify a likely publication outlet, and provide written, and class delivered reports when they are due. Details will be available in Sakai.

Exams & Assignments
A series of assignments/exams will be completed throughour the course for the various topics and a final is to be completed in the final exam period (5:00 Thursday 4 May.).

Grade Determination
The final course grade earned will be determined by exams and assignments (70%), a research report (30%). The standard percentage breakdown as shown below will be used in determining final grades.

Students must complete each exam/assignment at its scheduled time. If one is missed for any reason, a "makeup" must be promptly completed. Makeups will contribute at most 90% of the regularly scheduled contribution.

Preliminary Assignment Schedule