...Class of: 2013 Course Title: Financial Risk Management (FRM) Semester: III Credits: 3 Course Objective & Learning Outcome: This course gives students a working knowledge of derivative instruments and their applications in managing various types of financial risks. While doing so, students would understand the organizational aspects of those risk functions and their roles & responsibilities. The emphasis is on mechanics, properties and valuation of forwards, futures, options and swap instruments. In covering these instruments, cases, examples and notes would be sought from markets so as to provide a holistic view of the financial market structure i.e., currency, fixed income, equity and money markets. Cases discussed in the class would be contemporary in nature drawn from international experience. Pre-requisites: Students are advised to be through with Financial Management I, Financial Management II and Quantitative Methods. Students are expected to go through all the reading prescribed before every class and make a meaningful contribution through active class participation. The course is delivered through a combination of case discussions, problem solving, real life risk reports and simulation. The course would have an analytical and numerical flavor and hence students are required to bring their calculators/laptops to every class. Text Book: 1. Hull, John C. & Basu, S., Options, Futures, and Other Derivatives, 7th Edison, Prentice-Hall...
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...The role of writing in financial field Abstract As far as we are known, writing plays an important role in our daily life and is essential to all people from all walks of lives. Writing can prompt the fast development of the individual progress as well as their professional capacity as well. I am willing to come true this aim in the way of writing, so I do my best to interview a person, her name is Doris. We have the opportunity to pick up some techniques and significant skills in the way of giving question-- how to write in an appropriate way in some degree. Now, Doris is working in financial field. There is no doubt that we can learn some key points of how to write something in this field from her useful and important experiences. This assignment which is an informational report aims to give a brief introduction about the different genres of writings, then provide some useful instructions to her expected audience, what’s more, making those audience known that writing can convey unexpected reflection of our daily life in reality. The importance of writing in financial I have acquire that writing could promote her to achieve a lot of things during the process of her career such as data analysis, strategy decision making, and more about the international business. Moreover, Doris has spent 3 more years working in this field. And everyday, she takes one and a half to write. Meanwhile, she will try her best to finish her tasks, no matter how difficult the tasks are, she...
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...CPA Program The Practical Experience Guide EVE CHENG CPA SENIOR ANALYST BHP BILLITON Contents Practical experience requirement How to identify if your role is relevant Where do you fit? What skills areas do you need to demonstrate? Your mentoring relationship How to record your experience in the logbook The skills guide Personal effectiveness skills Leadership skills Business skills Technical skills 3 4 6 7 8 10 11 12 13 14 15 MICHELLE ROACH CPA 2 Practical experience requirement Did you know? Our studies show that members consistently perform better in their segments when they are enrolled in the practical experience requirement The practical experience requirement of the CPA Program gives you the opportunity to use the knowledge and skills gained in your education and apply them in your workplace. Combining your education with mentored practical experience will give you the opportunity to develop and demonstrate highly sought after technical and soft-skills that will benefit your entire career. Starting your practical experience requirement means that you are one step closer to your goal of becoming a CPA. CPA Australia recommends that you start the practical experience requirement and the professional level segments at the same time, if you are employed in a relevant role. What are the requirements? • complete a minimum of three years of relevant full-time or equivalent part-time work experience • demonstrate competence in 16 personal effectiveness...
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...analytical and educational background Management experience Diverse work and life experience Experience 02/2010 – present Raiffeisen Bank International AG, Austria Credit management corporate, Director Counterparty credit risk and underwriting management in European emerging markets with special focus on Russia and Ukraine. 12/2008 – 01/2010 Structuring complex corporate credit transactions such as LBOs and investment loans. Developing an advanced internal tool for calculating Risk weighted assets under both standardised and IRB approaches. Developing and implementing industry concept in credit risk management. Reporting large and complex transactions to the bank’s Credit committee and Management board. Exercising my own approval competences for approval of credit transactions. Mentoring junior professionals and trainees in the department. Raiffeisenbank AD, Bulgaria Corporate credit risk, Head of department Managed a credit risk department of 10 risk professionals responsible for the largest corporate credit risk exposures. Was a voting member of the bank’s credit committee with own approval authorities. Steering the credit committee meetings. Participated in risk related projects originated in head office improvement, Data Quality management, Regular risk reporting). Met National Supervisory in terms of IRB application status of the bank. (Rating model 06/2008 – 11/2008 EFG Eurobank AD, Bulgaria Credit risk management, Head of department Managed...
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...Behavioural Finance Financial Risk Management Table of Contents Table of Contents 1 Risk Management Paper ........................................................................................................ 2 1.1 Introduction and interpretation .................................................................................................... 2 1.2 Implementation ............................................................................................................................ 4 1.2.1 Aspects to consider ....................................................................................................................... 4 1.2.2 Implementation Process ............................................................................................................... 8 2 Appendix I – References ....................................................................................................... 10 Date: 24 of May 2012 th i Risk Management Paper 1 1.1 Risk Management Paper Introduction and interpretation If at the beginning of 2011, a highly respected person advised me that I was going to live through three major earthquakes within a year I would have struggled to believe them and justify arguing with the historical and scientific data, which clearly states the converse...
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...CPA Program The practical experience guide and logbook If you require further information about the practical experience requirement, or would like to notify us of a change, please contact CPA Australia: practicalexperience@cpaaustralia.com.au or contact your local office – details can be found on the inside back page of this guide. Disclaimer The material used in this booklet has been designed and prepared for CPA Australia’s practical experience requirement. It provides tailored guidance for mentors who are registered in CPA Australia’s practical experience requirement. The booklet and contents should not be used for any other purpose. CPA Australia, the publisher and the author of this booklet take no responsibility for any loss incurred by any person who relies on guidance offered in this booklet. Legal notice Copyright CPA Australia Ltd (ABN 64 008 392 452) (“CPA Australia”), 2010. All rights reserved. Save and except for third party content, all content in these materials is owned by or licensed to CPA Australia. All trade marks, service marks and trade names are proprietory to CPA Australia. For permission to reproduce any material, a request in writing is to be made to the Legal Business Unit, CPA Australia Ltd, 385 Bourke Street, Melbourne, Victoria 3000. CPA Australia has used reasonable care and skill in compiling the content of this material. However, CPA Australia and the editors make no warranty as to the accuracy or completeness of any information in these...
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...Study: Coca-Cola HBC Treasury Takes Control of Commodity Risk Management Dimitris Papathanasiou, Coca-Cola HBC - 11 Sep 2013 Coca-ColaHellenic Bottling Company standardised its approach to risk management by transferring commodity risk management into treasury, so this central and vital business process could be managed by experts on an integrated basis with other financial risks and overseen by the financial risk management committee. This case study explains how organisational changes, combined with the introduction of risk management technology, enabled the organisation to plan and execute a consistent, cost-effective hedging strategy, with reduced counterparty risk exposure levels, improved transparency and stronger levels of control. Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) is the world’s second largest bottler of the Coca-Cola Company’s products and the largest in Europe. Net sales revenue for fiscal 2012 was €6.8bn. Coca-Cola HBC is headquartered in Zug, Switzerland, and has a premium listing on the London Stock Exchange and a secondary listing on the Athens Exchange. It serves approximately 581m people in 28 countries. The company decided to concentrate its commodity market risk management within the treasury department, in response to high levels of profit and loss (P/L) volatility and the relatively high credit risk with its suppliers. The ensuing project involved change management for transfer of the company’s commodity risk hedging to treasury...
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...A risky business Dodie: We are all here now. As you know that Zelal Sulen is our new boss now. After she took up the official post, she found that Hi-Style is out of touch with its target consumers and is losing direction. As the member of manager consultants, for this point, today we need to think out at least two options to advise her to improve the situation. Am I understood? And think a while... Okay, let's make a start. Who want to speak first? Lily: Well, in my opinion, Hi-Style could allocate £10m to new investment in the business. For example, it could improve distribution and sales through an exclusive agreement with a major retailer, which could provide a steady marketing channel. Second, to launch new product ranges with major advertising campaigns. Thus, new products will be known to customers. Hi-Style could definitely reach wide publicity. Thirdly, to employ brand development consultants so as to improve its image. Brand development consultants are more professional so that better brand image will be built, leading to its properous future. Fourthly, to hire a top retailing executive to run the business. Therefore, the business will be more smooth and sales will be increased. The last one is to commission City Associates to do a thorough review of all Hi-Style's activities, from which Hi-Style could catch a better understanding of the whole business to control its operation. Dodie: Good.Thanks. Lily. And what's your opinion, Serena? Serena: Well, I prefer the...
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...Daniel Dyer Dr. Wheatley Financial Analysis April 5, 2012 A Team Shoes Comparison Throughout the simulation, A Team Shoes was challenged by other companies within the industry, but overall the firm’s differentiation strategy, with an emphasis on quality, was effective. When implementing a strategy, financial ratio analysis and analytical procedures on other financial measures can be extremely helpful in gauging a strategy’s success. Throughout the simulation, A Team’s management concentrated on several financial ratios and measures to adjust strategy accordingly. A Team’s analysis of earnings per share, debt to asset ratio, current ratio, net profit percentage, total asset turnover, revenue, cash on hand, stock price, warehouse expenses, and cost per pair played a large role in the firm’s success. Ratio Analysis * Earnings Per Share * Debt to Assets Ratio * Current Ratio * Net Profit Percentage * Total Asset Turnover One measure A Team’s management tracked was earnings per share vs. the best in industry (if no data point A Team was the Best in the Industry). Earnings per share is a market value ratio and is calculated by dividing net income by common shares outstanding. Throughout the simulation, A Team Shoes maintained a relatively high earnings per share number. In years four, five, and six the company was able to achieve the best earnings per share in the industry. This was primarily achieved by keeping earnings high relative to the...
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...corporations, and small businesses is the balance between financial risk and reward. This paper will look at both historical tools and avenues modern technology has adopted to create a balance for financial investors in the market today and how these tools are implemented in today’s businesses. Identifying opportunities and recognizing the risk associated with them is crucial to financial growth and success. Entities are continuing to find ways of leveraging risk by using different modeling tools to understand the source of risk, measure risk and transfer risk (Schwartz, 1996). Due to the expansion and growth of companies into new markets, risk has become an increasing concern for many businesses. It is clear through the recent market crash that more robust risk management tools must evolve with the changing investment practices that are taking place in today’s society. “The world’s financial markets have exploded with new products and new techniques such as derivatives and securitizations giving rise to huge new markets” (Epetimehin, 2012). If implemented strategically and used correctly, risk management tools can aid businesses in their journey of financial success and help them develop finely tuned investment planning and business strategies (Anonymous, 1983). It is critical for businesses to understand the risk associated with each transaction and investment made by establishing appropriate risk management systems to identify, measure, monitor, and control the risk...
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...especially financial resources, it has available to work with. The financial aspect of a business determines almost every other aspect of that business. Being able to utilize budgets, in order to reduce costs and make profit, is imperative. Pro forma accounting is a way of using the budget to analyze what to expect in the future. This statement should be used to forecast any issues that might lie ahead. It also should be used to provide time to the company to make any necessary changes, before it is too late. By using budget and pro forma accounting any company should have a good understanding of what type of financial resources are available to them in order to cut costs and increase profits. During the simulation I initially did not pay too much attention to the budget or the pro forma accounting statements, which did not do me any favors. After reviewing the pro forma statement at the end of the first quarter, I should have made adjustments. The cash flow was lower than the recommended $300,000, so I reviewed my decisions, but did not want to change anything. Which inevitably put my company in a high risk situation right from the start. When the quarter was done and I was able to review the actions that had taken place, I realized I was way over budget and the simulation automatically set me up with a loan shark to help cover the costs. I was then burdened with paying back the loan shark with interest and stock share throughout the rest of the simulation. I was not...
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...Chalmers University LBT431 Financial Management Workshop Synopsis AIM OF WORKSHOP The aim of the workshop is that the student shall have a good understanding of the techniques used for the financial control and management of a project. The aim is also that the student shall have the ability to participate in a professional way in a project team situation. CONTENT The workshop covers the activities that are related to planning, allocating and coordinating resources, preparing a budget and applying earned value analysis for the purpose of financially managing a project. The workshop includes: * Subject introduction lectures and exercises * Preparation of a network (CPM) and Gantt chart and resource allocation * Preparation of a budget * Performance evaluation based upon Earned Value Analysis * Risk Management and managing stakeholders * Working as a project team. LEARNING OUTCOMES On successful completion of the workshop students will be able to: * Understand the purpose of project financial management control systems and how control is implemented * understand how budgets are established and how earned value is monitored; * apply, through an integrative and interactive team exercise, the knowledge they have gained: * work in a project team situation. LEARNING, TEACHING AND ASSESSEMENT STRAEGY The workshop will be delivered through a mixture of lectures, exercises and a project simulation. Lectures will be used provide information...
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...University of Phoenix 12 Economic Issues Simulation HCS/440 Lisa Christopher Economic Issues Simulation Paper The simulation review paper will address the summary of my findings of the financial accounting of the Elijah Heart Center Hospital, according to the financial indicators in the simulation: Capital shortage, Funding options for equipment, Funding options for capital expansion, summary and the conclusion. Capital Shortage The cost cutting options I selected was reducing agency staff and changing the skill mix for Elijah Heart Center. The reason why I chose this option is because we can reduce some cost by not hiring so many contracting nurses to save on payroll and increase the unlicensed staff to be used in some areas more than others to save some revenue and not jeopardize the quality of care for the patients first. I picked loan option 1, which the loan is 1.5 million at 9.45% interest rate, monthly installments of 131,490 for 12 months and no prepayment limitation, so we put nothing up front initially (University of Phoenix, 2011). My outcome was making a smaller loan at a higher rate to defray cost while reducing contracting nurses and utilize the unlicensed staff to be diverse in multiple skills in the hospital and not cut quality of the patient’s care at this health facility. Funding Options for Equipment You do not have to buy a new CT scanner because this machine is the least expensive in the hospitals and it can be upgraded if need be for the life...
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...ATTACHMENT A: GENERIC TRAINING PLAN EY Zimbabwe – 2013 Instructions for completion · This is a generic training plan for ONE hypothetical trainee · All applicants must complete all the sections TRAINING PLAN Elective: Auditing & Assurance Residuals: Taxation Management Decision-Making & Control Financial Management Internal Audit, Risk Management and Governance COMPULSORY SKILLS BUSINESS ETHICS Mode through which competence will be achieved (i.e. practical experience/ simulation Competency to be achieved BE(C) Acts ethically and in accordance with the rules of professional conduct Tasks to be performed BE(C)1 Displays honesty and integrity BE(C)2 BE(C)3 BE(C)4 BE(C)5 BE(C)6 BE(C)7 BE(C)8 Carries out work with a desire to exercise due care Maintains objectivity and independence Avoids conflict of interest Protects the confidentiality of information Maintains and enhances the profession’s reputation Adheres to the rules of professional conduct, including the ICAZ Code of Professional Conduct Identifies and adequately responds to potential ethical dilemmas Examples of activities to be performed by trainees to gain exposure to this competence E&Y Firm values – Our shared values inspire our people worldwide and guide them to do the right thing, and our commitment to quality is embedded in who we are and in everything we do. Our values define who we are · · · People who demonstrate integrity, respect and teaming People with energy, enthusiasm and the courage to lead People who...
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...2011 FRM EXAM TRAINING SYLLABUS PART I Introduction to Financial Mathematics 1. Introduction to Financial Calculus a. Variables – Discrete and Continuous b. Univariate and Multivariate Functions – Dependent variable and Independent variable c. Physical representation of a function d. Linear and Non-Linear functions e. Limits of a function f. The number e and Natural Logarithm g. Differential Calculus – Differentiation, Interpretation - Slope of a tangent, using derivatives to calculate function values and deltas. Linear functions - 1st order derivative. Non-linear functions – 1st and higher order derivatives, interpretations and usage. Rules of derivatives. h. Functions – Differentiation and Taylor Series Expansion i. Introduction to Partial Derivatives j. Introduction to Integral Calculus 2. Introduction to Bond Mathematics a. Finance and the Time Value of Money b. Concept of Zero Coupon (Discount) Bonds and Coupon Bonds. c. Bond Characteristics d. Bond Types – Fixed Rate, Floating Rate, Inverse Floater Rate, etc. e. Interest Rates – Discrete and Continuous Compounding f. Bond Pricing – using ZCYC or YTMC with discrete compounding or continuous compounding g. Difference between bond coupon rate and bond yield h. Calculating Bond Yield (YTM, CY, MMY, ZCY/Spot, Par Yield, etc.) i. Price Yield Relationship Introduction to Financial Statistics and Econometrics 1. Introduction to Financial Statistics a. Frequency distributions b. Measures of Central Tendency/Location (Mean/Mode/Median)...
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