ECTS credits ECTS credits: 4.5
ECTS Hours Rules/Memories Student's work ECTS: 76.5 Hours of tutorials: 4.5 Expository Class: 13.5 Interactive Classroom: 18 Total: 112.5
Use languages Spanish, Galician
Type: Ordinary subject Master’s Degree RD 1393/2007 - 822/2021
Departments: Financial Economics and Accounting
Areas: Financial Economics and Accounting
Center Faculty of Economics and Business Studies
Call: Second Semester
Teaching: With teaching
Enrolment: Enrollable | 1st year (Yes)
This subject pursues the following objectives:
- Understanding the role of finance and finance department in the process of corporate risk management.
- Conducting an analysis of the risks affecting the company.
- Knowing the products available to the company to carry out a policy of risk management.
- Analyzing the risk of business operations.
- Quantifying the exchange and interest rate risks and design hedging strategies.
- Understanding the fundamentals of the companies that operate internationally.
- Making a diagnosis of the company in crisis and developing a feasibility plan through a financial simulation models.
With this aim the subject is structured in 5 units. In the first, risk measurement and modelling is addressed in a generic way. Then in unit 2 instruments and techniques of financial risk management, including derivatives, are analyzed. Then we move into the analysis of different financial risks, in particular default risk, interest rate risk and exchange rate risk and the processes of crisis and reorganization are also addressed with a focus on the development of the viability plan.
UNIT 1: CORPORATE RISK
UNIT 2: PRODUCTS FOR CORPORATE RISK MANAGEMENT
UNIT 3: DEFAULT RISK MANAGEMENT
UNIT 4: INTEREST RATE RISK MANAGEMENT
UNIT 5: CORPORATE INTERNATIONAL FINANCE AND EXCHANGE RATE RISK MANAGEMENT
FINANCIAL RISK
Day, A. (2012): Mastering Financial Modeling, Pearson.
Durán y Otero (2010): Análisis financiero dinámico, Cuadernos de la Fundación Mapfre
Holden, C. (2012): Excel Modeling in Corporate Finance, Pearson.
Jackson y Staunton (2005): Advanced Modelling in finance using excel and VBA , Wiley.
Lado-Sestayo, R. y de Llano-Paz, F (2021): Guía para implantar la gestión de riesgos en la empresa paso a paso. Introducción a la gestión del riesgo. Fundación INADE - Coordinador: Ángel Santiago Fernández-Castro. A Coruña (España). ISBN: 978-84-09-26841-2. Depósito Legal: VG 12-2021.
Jorion (2009): Financial Risk Manager Handbook, Wiley.
Mun, J. (2008): Modeling Risk, Wiley
Ferruz, Portillo y Sarto (2009): Dirección financiera del riesgo de interés, Pirámide
Fernández y Partal (2010): Gestión y control del riesgo de crédito en la Banca, Ed. Delta.
Charnes (2007): Financial modeling with Crystal Ball and Excel. Wiley
Scott (2010): Building financial models with Microsoft Excel : a guide for business professionals, Wiley.
DERIVATIVE PRODUCTS
Castellanos E. (2012) Opciones y futuros sobre renta variable: manual práctico. Editorial BME.
Díez de Castro y Mascareñas (1994) ” Ingeniería Financiera”
Fabozzi, F (2001): Handbook of fixed income securities, McGraw Hill Profesional
Hull,J (2009): Mercados de futuros y opciones, Pearson-Prentice Hall.
Knop, R (2003): Derivados de crédito, Ediciones Pirámide.
Knop, R (2006): Manual de instrumentos derivados, EFA.
Lamothe,P et al. (2006) “Opciones financieras y productos estructurados”, (1994) “Swaps y otros derivados OTC”
Martín Marín y Trujillo Ponce (2004) “ Manual de Mercados Financieros”
Martínez Abascal y Guasch (2004): Gestión de carteras de renta fija, McGraw-Hill Profesional
DEFAULT RISK
Fabozzi, F (2001): Handbook of fixed income securities, McGraw Hill Profesional
HULL,J (2004) Opciones y futuros.Mc Graw Hill
JORION, P. (2009); Financial Risk Manager Handbook, 5th Edition, Wiley (Finance),
Knop, R (2003): Derivados de crédito, Ediciones Pirámide.
Lamothe,P et al. (2006) “Opciones financieras y productos estructurados”, McGraw Hill
Lando, D. (2004), Credit Risk Modeling: Theory and Applications, Princeton University Press.
Loffler and Posch (2007): Credit risk modeling using excel and VBA, John Wiley&Sons
Martínez Abascal y Guasch (2004): Gestión de carteras de renta fija, McGraw-Hill Profesional
Saunders, A. and Allen, L. (2002), Credit Risk Measurement: New Approaches to Value at Risk and Other Paradigms, 2nd edition, Wiley.
Tomás et al. (2008): Cómo analizan las entidades financieras a sus clientes, Gestión2000.
Garrido, V. (2012): Modificaciones estructurales y reestructuración empresarial, Dykinson.
INTEREST RATES
HULL,J (2010): Introducción a los mercados de futuros y opciones, Pearson Prentice Hall
JORION, P (2010): Financial Risk Management Handbook, Wiley.
Fabozzi, F (2001): Handbook of fixed income securities, McGraw Hill Profesional.
Knop, R et al. (2006): Instrumentos de renta fija, Ariel
Martínez Abascal y Guasch (2004): Gestión de carteras de renta fija, McGraw-Hill Profesional
Knop et al. (2008): Activos de renta fija. Pirámide.
EXCHANGE RATES
Eiteman et al. (2010): Las finanzas de las empresas multinacionales, Ed. Pearson
Eun y Resnik (2007): Gestión financiera internacional, Mc Graw Hill
Madura, J (2003): International financial management, Thomson
Martín Marín, J.L. (2006): Finanzas Internacionales, Ed Thompson
Shapiro (2009) Multinational Financial Management, John Wiley.
Competences of the Master the subject contributes to:
- Capacity to apply the acquired knowledge to corporate reality.
- Capacity to solve problems in new and badly known contexts.
- Capacity to design integrated management projects or of functional areas of the firm.
- Command on different management tools, instruments and methods necessary to run the company.
- Capacity to identify, gather and interpret relevant data about issues related to corporate risk management.
- Capacity to communicate information, ideas, corporate financial management problems and proposals of solutions, making use of verbal and written language and of presentation techniques, either to specialized publics or non-specialized ones.
- Capacity to continue with autonomous learning.
- Capacity to develop the financial management of a company.
- Cross-disciplinary skills: capacity of analysis and synthesis, organization and planning and to integrate and work into teams of diverse composition.
Specific competences of the subject:
- To know the role of Finance and of the Financial Department in the process of corporate risk management.
- To make an analysis of the risks affecting the firm.
- To know the products at the company’s disposal to undertake a policy of risk management.
- To analyse the risk of commercial operations.
- To quantify market and interest rate risks.
- To know the essentials of companies operating at an international level.
- To know the management of exchange rate risk.
- To make a diagnosis of the company at crisis and develop a viability plan through a model of financial simulation.
Being a subject of a Master, it is especially important that the student notes the applicability of its contents. The development of the theoretical contents will be accompanied by multiple examples and the solving of case studies, and solutions will be searched individually and/or in small working teams. In this way the student will reach a better understanding and a higher motivation, as consequence of his/her involvement with the learning process. An important part of the subject will be given at the computer room, which will allow a better monitoring of the students’ progress, as well as to develop new abilities and skills. Furthermore, the review of bibliographic sources will be promoted in order to help the student having a more integral view and to improve the deepening into those topics that can be more interesting. The English language will be used in lectures and in the assessment process (Lugo).
Students will receive the support of the virtual campus of the USC through the virtual classroom of the subject, in which the periodic programming of the classes and the corresponding supporting material will be offered, both for the lecture and interactive sessions.
In the first opportunity, two alternative evaluation systems are foreseen, both for students taking the subject for the first time and for repeating students:
- A continuous evaluation system, in which during the semester the students will develop various evaluation activities that will allow them to pass the subject without having to take a final exam. Three types of evaluation activities are included in this system:
o Theoretical-practical tests: two tests will be carried out throughout the course, in the usual class time, covering all the contents of the subject. They will account for 30% of the final grade.
o Spreadsheet test: during class time, a test will be carried out to assess the skill in handling the spreadsheet for the analysis of international financial management decisions. It will account for 30% of the final grade.
o Works related to the content of the different topics that make up the program or others of relevance in the field of the subject, for which a deadline will be set. They will contribute 40% of the final grade.
- A unique assessment system, consisting of taking a theoretical-practical final exam on the established official date, which will represent 100% of the final grade, reserved for those students who, for reasons listed in Instruction nº1 / 2017 of the USC Secretaría Xeral, request and obtain a class attendance exemption, as well as for those who do not pass under the continuous evaluation system.
In the second opportunity, the evaluation is only contemplated through the completion of a final exam. In any of the modalities it will be necessary to obtain a grade equal to or greater than 5 to pass the subject.
PERSONAL WORK AT THE CLASSROOM
Classroom session in groups: 10 hours
Seminars in groups: 22 hours
Tutorship in very small groups: 8 hours
Evaluation at the classroom: 5 hours
TOTAL PERSONAL WORK AT THE CLASSROOM: 45 HOURS
PERSONAL WORK OF THE STUDENT
Autonomous study, individual or in group: 27,5 hours
Writing exercises, conclusions or other essays: 10 hours
Recommended readings, activities at a library or similar: 20 hours
Preparation of oral presentations, debates or similar: 10 hours
TOTAL PERSONAL WORK OF THE STUDENT: 67,5 HOURS
Basic knowledge on Finance is required. It is considered of critical importance to attend to the lectures as a way of understanding and assimilating the subject contents. With regard to the non-lecture hours, the student will have to invest hours for the revision of the contents presented at the classroom, and to apply and consolidate the knowledge through problems resolution, as well as to deep into the concepts through the bibliographic revision. With a constant work during the four-month period the study for the final exam should not imply an excessive number of study hours.
It is as well recommended to make use of the tutor hours in order to solve doubts or clarify concepts. On the other hand, given the important role of the Excel applications for this subject, the student is advised to improve his skills both with his personal effort as well as with the tutor hours.
A minimum level B1 of use of the English language is required (Lugo).
In cases of fraudulent performance of exercises or tests, the provisions of the Regulations for the evaluation of student academic performance and review of grades will apply.
The possibility is contemplated that, in an exceptional and justified way, virtual teaching is combined with face-to-face teaching up to a maximum of 10% of the hours of the subject. Depending on the circumstances, the possibility of developing content in asynchronous mode is also foreseen through sessions recorded on video and made available to students respecting the official schedules.
CONTINGENCY PLAN
The following adaptations will be applied in the sections of TEACHING METHODOLOGY and ASSESSMENT SYSTEM in each alternative scenario that is applicable according to the indications of the competent administration and the USC.
TEACHING METHODOLOGY
The development of the sessions will take place in the class schedules established as follows in each of the alternative scenarios:
SCENARIO 2 (DISTANCING):
- Presentations: face-to-face and / or not face-to-face by telematic means (preferably synchronously, through the virtual campus of the USC and / or the corporate platform of the USC MS ’Teams).
- Interactive: face-to-face and / or not face-to-face electronically (preferably synchronously, through the virtual campus of the USC and / or the corporate platform of the USC MS ’Teams).
- Tutorials: not in person by telematic means (through the corporate platform of the USC MS ’Teams).
SCENARIO 3 (CLOSING OF THE FACILITIES):
- Presentations: not in person by telematic means (preferably synchronously, through the virtual campus of the USC and / or the corporate platform of the USC MS ’Teams).
- Interactive: not in person by telematic means (preferably synchronously, through the virtual campus of the USC and / or the corporate platform of the USC MS ’Teams).
- Tutorials: not in person by telematic means (through the corporate platform of the USC MS ’Teams).
LEARNING ASSESSMENT SYSTEM
The development of the evaluation through the instruments established in this section will be carried out on the dates set in the final tests calendar and at the class times established as follows in each of the alternative scenarios:
SCENARIO 2 (DISTANCING):
- Final test: face-to-face or telematic(through the USC virtual campus and / or the USC MS ’Teams corporate platform), in accordance with the guidelines established at that time.
- Continuous assessment: telematic (through the USC virtual campus) and face-to-face or telematic (through the USC MS 'Teams corporate platform).
SCENARIO 3 (CLOSING OF THE FACILITIES):
- Final test: all evaluation activities will be telematic (through the virtual campus of the USC and / or the corporate platform of the USC MS ’Teams).
- Continuous evaluation: all evaluation activities will be telematic (through the virtual campus of the USC and/or corporate platform of the USC MS ’Teams)
Ruben Lado Sestayo
Coordinador/a- Department
- Financial Economics and Accounting
- Area
- Financial Economics and Accounting
- Phone
- 881811672
- ruben.lado.sestayo [at] usc.es
- Category
- Professor: University Lecturer
| Wednesday | |||
|---|---|---|---|
| 10:00-11:30 | Grupo /CLE_01 | Spanish | Classroom 13 |
| 11:30-13:00 | Grupo /CLIS_01 | Spanish | Classroom 13 |
| 05.22.2024 17:00-19:00 | Grupo /CLE_01 | Classroom 13 |
| 07.04.2024 10:00-12:00 | Grupo /CLE_01 | Classroom 13 |