333-405 Risk Strategies

333-302 Corporate Finance.

This subject applies modern financial techniques to the management of diversifiable risks. These techniques include hedging, real options, portfolio design, swaps and leverage; and are combined with concepts such as corporate behavioural finance and utility functions. This enables students to develop quantitative measures of diversifiable, or business, risks and manage them effectively. The aim is to provide a comprehensive theoretical understanding of the nature and sources of diversifiable risks - financial risk strategy - so that these risks can be leveraged strategically.

• High level of development: oral communication; written communication; collaborative learning; application of theory to practice; critical thinking; receptiveness to alternative ideas.

• Moderate level of development: problem solving; team work; interpretation and analysis; synthesis of data and other information.

• Some level of development: statistical reasoning; evaluation of data and other information; use of computer software; accessing data and other information from a range of sources.

A group seminar presentation (10%), individual written assignment of not more than 2000 words (20%) and three hour end of semester exam (70%).