ENTERPRISE RISK MANAGEMENT

The course is an elective teaching for the Business Administration degree. Its aim is to provide the student with the basic knowledge of risk management in the company.
The course presents an integrated and, to some extent, innovative approach to corporate finance, as it combines the analysis of finance fundamental principles, with the corporate risk management problems. The goal of corporate capital value maximization is integrated with the analysis and management of the various risks faced by firms in their operations, a fundamental element of corporate activity. In synthesis a course presenting and analyzing all the fundaments of corporate finance, adding a risk management corporate vision

1) knowledge and understanding of the types of corporate risks;
2) knowledge and understanding of the regulatory framework in terms of enterprise risk management;
3) knowledge and understanding of tools and models for the identification, impact measurement, mitigation and containment of corporate risks;
4) ability to apply the tools to measure and manage corporate risks;
5) knowledge and understanding of the corporate value maximization principle in relation to risky business choices.
6) Ability to integrate the principle ov enterprise value maximization and enterprise risk management
7) Ability to undertake the financial choices that allow the maximization of the corporate value.

No previous requirements are requested

1) The firm and its stakeholders, the goal of global value and the EVA/MVA concept
2)Variability and corporate risk, analysis and statistical tools, financial mitigation logic and differentiation. Risk – return models à la Sharpe-Lintner (CAPM and Beta) 3) Corporate risk management: risks , impact appraisal, mitigation decisions, operational measures for risk limitation. Rules to be followed. Ex. The “COSO” approach and other models.
4) The investment valuation, cash flows, their uncertainty , the weighted average cost of capital, the investment valuation models used by the firms.
5) Financial structure decisions and corporate risk impact
6) The corporate valuation models: enterprise value and equity value.

A.. Damodaran – O. Roggi “Elementi di finanza aziendale e risk management” - Maggioli Editore – 2016

The ending exam is a written test with 5 open questions among which some computing exercises to be resolved. - Time one hour

The course consists of 6 hours weekly i.e. 30 hours for the whole course. Every topic will be analyzed according to theoretical principles and then practical applications will be developed by means of exercises solutions, web research, the use of computing models in part provided by the teacher, in part created by the students and case studies discussions.

Italian

Besides the Damodaran-Roggi text other teaching material and readings will be provided, all available on line

written