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, exchange rate volatility and 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
Principles of Financial Engineering, Salih N. Neftci Second Edition Academic Press Advanced Finance Series (2008)
A variety of texts, articles, and Internet sources will be employed. A partial list can be found within the Blackboard site.

Internet
http://www.bradley.edu/fcba/faculty/arr/courses/fin627/syllabus.html

Office Hours
To be announced

Prerequisites
All core courses must be completed.

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

Grade Determination
The final course grade earned will be determined by exams (30%), a research report (50%), and participation(20). The standard percentage breakdown as shown below will be used in determining final grades.

Students must take each exam at its scheduled time. If an exam is missed for any reason, a "makeup" exam must be promptly completed. Makeup exams will contribute at most 90% of the contribution of regularly scheduled exams. .

Preliminary Assignment Schedule