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 firm value. By the end of the course students are expected to be familiar with the economics of financial risk management, with specific reference to non financial corporations, as well as with the advantages/disadvantages of hedging strategies. A part of the course is devoted to the analysis of derivatives and their uses in risk management. Therefore, at the end of the course students should also be able to identify the main techniques used to hedge firm's risks by trading financial derivatives.

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.
  
  Students attending the course are also required to discuss a case study. The case study is expected to be addressed in group. Assigned cases are intended to give students practice in assembling data to support a decision. Each group is expected to hand-in a power-point presentation and any additional files the day before class presentation.
  
  The final mark will be calculated as the average between the written exam's score and the case study discussion's score.
  
  

English will be the teaching language

English will be the language used in the written exam