Course Objective
Financial risk management examines fundamental concepts in corporate and investment financial management with emphasis on derivative valuation, use and creation. The material begins by developing a comprehensive understanding of risk management elements. Behavioral characteristics of these building blocks and their interactions are studied to illustrate the synthesis of desired results. Various financial engineering tools are employed to accommodate risk arising from commodity price, interest rate, and exchange rate volatility among other factors. The dramatic impact that financial risk management exerts on an organization's performance makes its mastery a necessary skill for contemporary financial managers. Concluding applications address the development of suitable risk management policies.

Text
Fixed Income Markets and Their Derivatives, Suresh Sundaresan, Third Edition, Elsevier (2009)
A variety of texts, articles, and Internet sources will be employed. A partial list can be found within the Sakai site.

Internet
http://hilltop.bradley.edu/~arr/courses/627/syllabus.html

Office Hours
W 2:00-4:00 and online M 4:00-4:30 email with your needs

Prerequisites
All core courses (500 level) must be completed.

Research Project
Select a topic for a study of risk management. Research the topic completely, identify a likely publication outlet, and provide written, and class available reports when they are due.

Exams & Assignments
A series of assignments/exams will be completed during the course and a final exam is scheduled for the last class day.

Grade Determination
The final course grade earned will be determined by exams and assignments (40%), a research report (40%), and participation(20%). The standard percentage breakdown as shown below will be used in determining final grades.

Students must complete each exam/assignment at its scheduled time. If one is missed for any reason, a "makeup" must be promptly completed. Makeups will contribute at most 90% of the regularly scheduled contribution.

Preliminary Assignment Schedule