ENTERPRISE RISK MANAGEMENT

It is a free-choice teaching for the three-year degree course in Business Economics. Its goal is to provide the student with the basic knowledge of risk management in companies and is a useful starting point for those who intend to continue beyond a Bachelor's degree through Master's degree in Accounting and Finance, in Management and in Economics and Finance.
Teaching presents students with an integrated and, in some ways, innovative vision of corporate finance as it combines the review of the fundamental principles of this discipline with a specific focus on the broader issue of corporate risk management. The objective of maximizing the corporate capital value is integrated with that of managing different risk profiles, as fundamental aspect in the operational practice of companies.
The traditional themes of corporate finance and related management are therefore addressed according to the risk manager's perspective by going into detail about operational issues that can affect the company's performance and thus alongside the traditional analysis of rate, exchange and liquidity risks, the methodology by which companies analyze and manage operational, strategic, environmental and reputation risk profiles.

1) knowledge and understanding of the types of business risk;
2) knowledge of enterprise risk management regulatory schemes;
3) Knowledge and understanding of the tools and models of detection, impact measurement, mitigation and containment of business risks;
4) ability to apply tools to measure and manage business risks;
5) knowledge and understanding of the concept of maximising value in relation to risky business choices;
6 ) ability to operationally integrate the principles of maximising business value with business risk management;
7) ability to make financial choices that maximise the value of the enterprise.

No prerequisites required, basic knowledge in corporate finance are welcome

Part 1: Reference principles
1) The company, its stakeholders, the goal of global value and the concept of EVA/MVA
2) Variability and risk in the company. From risk-reward models à la Sharpe-Lintner (CAPM and Beta) to the tolerable risk concept
3) Corporate risk management: risk in the strategic vision of the company, identification of the different risks to which the company is subject, assessment of their impact, mitigation decisions, operational measures of containment. Rules and regulations to be respected. E.g.: "COSO" approach, ISO 31000 and others
Part two: operational choices
4) Investment choices and their impact on sustainable risk. Estimating cash flows in the context of uncertainty and quantifying the cost of capital.
5) Funding choices and their motivations. Impact on business risk
6) Risk mitigation strategies and techniques

Readings and handouts indicated by the teacher via Moodle

The final test will usually be written with open questions and exercises.
The final test duration will be between 60 and 90 minutes.

The course is spread over 6 hours per week of frontal lessons for a total of 30 hours. The theoretical principles of each topic are presented, so they will be applied in practice through the solution of exercises, web research, the use of calculation models partly provided by the teacher partly made by students, and the discussion of case studies.

Italian

written