Enrolled students are expected to have familiarity with basic concepts of capital markets
and finance (although some concepts will be briefly reviewed during the course). The
level of mathematical complexity involved in these topics will be manageable.

The aim of this course is to provide a thorough understanding of financial risk
management techniques designed to maximize value of firm. The course highlights the
management of financial risk and tools of risk management from business firm's
perspective. A part of the course is devoted to the analysis of derivatives and their uses
in risk management.

The course is divided into three parts:

1. Concepts and the economics of Risk Management

2. Tools for Financial Risk Management

3. The practice of Risk Management

The first part of the course will address the general concepts of risk management
applied to firms, trying to shed light on why firms (should) hedge. The second part is
more technical and it will cover the tools for hedging risks (in particular, financial
derivatives). The last part will help students to understand how a hedging strategy can
be designed and put into action to be effective.

• 1.  (A) J.C. Hull Options, Futures and Other Derivatives Pearson, Prentice Hall, Upper Saddle River, 2011
• 2.  (A) Brealey R., Myers S. and F. Allen Principles of Corporate Finance McGraw-Hill, NY, 2011 » Pagine/Capitoli: 20,21,26,27

The materials used in this course (slides/exercises) will be regularly uploaded on the teacher's personal page.

• Although the course is based on a theoretical approach, lessons will be followed by
  practical classes in which case studies and practical exercises will be discussed.

• The final exam is written and covers all the three sections of this course. Specifically, it
  will include multiple choice questions, one open question and practical exercises. Multiple
  choice questions are aimed to assess the level of understanding of the theory; open
  question is devoted to test the ability to discuss issues on managing risks and practical
  exercises are intended to evaluate the individual ability to put in practice theoretical
  concepts of financial risk management.

English will be the teaching language

English will be the language used in the written exam