ENTERPRISE RISK MANAGEMENT

The course is an elective teaching for the Business Administration degree. Its aim is to provide the students with the basic knowledge of risk management in the firm
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 therefore 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 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 and corporate strategic vision, identification of the various risks exposure, impact appraisal, mitigation decisions, operational measures for risk limitation. Rules to be followed. Ex. The “COSO” , the ISO 31000 approach and other models.
4) The investment valuation process, the basic rationale and the analysis criteria used by the firms. Cash flows computing, their uncertainty , the weighted average cost of capital. Value computing models
5) Financial structure decisions and their reasons. Impact on corporate risk.t
6) The corporate valuation models: enterprise value and equity value. Corporate value computing models.

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.

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

written