Finance Foundations: Risk Management

Prepare for the worst before things go bad. Learn the foundations of financial risk management, including identifying, measuring, owning, addressing, and monitoring risk.

Introduction

• Managing risk for your business

1. Purpose and Process of Risk Management

• Understanding risk in corporations
• The risk management process
• The importance of a risk management process

2. Nine Types of Corporate Risks: Nonfinancial and Financial

• Four nonfinancial corporate risks
• Five financial corporate risks
• Overview of financial market risks
• Direct and indirect risks

3. Risk Solutions and Active Management

• Financial risk management solutions
• Financial solutions: Buyer options
• Financial solutions: Seller options
• Financial solutions: Interest rate swaps
• Financial solutions: Futures and forwards
• The cost of financial risk management solutions: Standardization and time
• The cost of financial risk management solutions: Liquidity and volatility
• Nonfinancial solutions

4. Corporations Manage Risk

• Professionals in corporate risk management
• Quantitative and qualitative data collection for risk management

Review and Conclusion

• Looking ahead