RISK PLANNING AND BUSINESS CRISIS MANAGEMENT

The course is aimed at introducing the principles, processes and operational tools to early detect and proactively manage the risk of corporate financial distress.
The principles introduced in the course have also been implemented at the regulatory level in Italy in the new Code of corporate financial distress and insolvency.

- Knowledge of the main contents of the Code of corporate financial distress and insolvency
- Knowledge of the main forward looking assessment methods of short-term financial distress risk: risk of the treasury budget and related summary indicators
- Knowledge of the main forward looking assessment methods of medium-term financial distress risk: risk of the business plan and related summary indicators

Contents of Risk Measurement

1. Risk of corporate financial distress: the new regulatory reform and the new management approaches
- the Code of corporate financial distress and insolvency
- Convergence with the contents of the banking regulation (EBA Guidelines on loan origination and monitoring)
- the Enterprise Risk Management (ERM) process
- Taxonomy of forward looking information
2. Short-term forward looking assessment: the risk of the treasury budget
- Distinction between corporate financial distress indicators and insolvency indicators
- The corporate cash flows and the assessment of their risk profiles
- Developments of the traditional treasury tools
- Use of forward looking information on treasury budget risk by financial stakeholders
3. Case study: forward looking monitoring of the treasury budget risk
4. Medium-term forward looking assessment: the risk of the business plan
- Economic and financial KPIs and the assessment of their risk profile: the ERM process
- Forward looking indicators of solvency risk
- Developments of the traditional planning tools
- Use of forward looking information on business plan risk by financial stakeholders
5. Case study: forward looking monitoring of the business plan risk

lecture notes and slides

Written exam

Lectures and case studies discussions

Italian

written