Checking date: 04/05/2020

Course: 2019/2020

Risk Management and Reporting
Study: Master in Accounting (358)

Coordinating teacher: GARCIA OSMA, BEATRIZ

Department assigned to the subject:

Type: Electives
ECTS Credits: 3.0 ECTS


Students are expected to have completed
Business valuation methods and Corporate Finance.
Competences and skills that will be acquired and learning results.
Basic competences CB8 That students are able to integrate knowledge and face the complexity of formulating judgments based on information that, being incomplete or limited, includes reflections on social and ethical responsibilities linked to the application of their knowledge and judgments CB9 That the students know to communicate their conclusions and the knowledge and last reasons that sustain them to specialized and non-specialized public in a clear and unambiguous way General competences CG1 Acquire the ability to locate, extract, and analyze information from multiple sources, and to form a reasoned opinion that can be defended in written or oral form to different audiences. CG2 Acquire the ability to plan optimally in the allocation of contracted resources (selection of work team and budgeting project hours). CG3 Acquire the ability to submit written reports orally to both the members of your team and your clients. CG5 Ability to solve problems, from the analysis of data and structured or unstructured information, which may involve the management of databases, or information systems and business management. General CG6 Acquire the ability to work in organized and structured work teams where each member is responsible for a part of which must subsequently inform the rest of the team. CG7 Ability to diagnose potentially complex real problems by integrating and applying knowledge of different subjects. General CG8 Acquire the ability to direct the search and learning of any new situation autonomously. CG9 Ability to work in changing areas and to anticipate new situations. Specific competences CE9 Ability to apply advanced techniques to determine the value of a company based on its accounting information, systematic risk and atypical projects, as well as to perform a correct and detailed financial planning in different and uncertain scenarios. CE10 Ability to understand the concept of risk and its different types to be able to manage it, and relate it to the different corporate structures (financial and non-financial). CE11 Ability to use advanced techniques to manage each of the risks that affect a company.CE16 Ability to apply, according to current regulations at all times, advanced management techniques and accounting design of a company taking into account their financial, accounting and economic needs in order to ensure that accounting is the instrument of control and management that investors need. CE17 Acquire the ability to know and propose solutions to the different agency problems that arise within the company.
Description of contents: programme
SUBJECT: Risk Management and Reporting 1. Financial Risk Management and Firm Value 2. International Accords (Basel, Solvency) 3. Identifying Financial Risks: Evaluation and Management 4. Managing Financial Risks 5. International Regulation on reporting and measurement of financial risk 6. Measurement, reporting and disclosure of risk
Learning activities and methodology
Activities and evaluation: Excel exercises on: o Analysis of a company's exposure to various financial risks (especially interest rate and exchange rate): quantitative exposure analysis, sensitivity measures (VaR, CFaR, stress test, etc.). o Different alternatives for managing the previous exposure through derivatives: non-hedging, 100% hedging, 50% hedging, hedging through options, dynamic hedging, coverage based on VaR / CFaR levels, etc. o Different alternatives of scorecard / periodic reporting to the Management. - Excel exercises will be carried out regarding the valuation of derivative financial instruments that companies usually use more frequently in the management of their financial risks: IRS, currency forward, forward on commodities, different types of options, etc. . The activities and attendance will count 40% of the final grade and the exam 60%.
Assessment System
  • % end-of-term-examination 60
  • % of continuous assessment (assigments, laboratory, practicals...) 40
Basic Bibliography
  • Allayannis, G., Ihrig, J., Weston J. Exchange-Rate Hedging: Financial vs. Operational Strategies. American Economic Review Papers and Proceedings, Vol. 91 (2), pp. 391¿395. 2001
  • Bessis, J., . Risk Management in Banking. Wiley. 2015
  • Blokdyk, G. Financial risk management. Beginner's Guide - Third Edition. CreateSpace Independent Publishing Platform.. 2017
  • Hakala, J., Wystup, U. Foreign Exchange Risk: Models, Instruments, and Strategies. Risk Books. London.. 2002
  • Kavaliova, M. Foreign Exchange Risk Management: Which Hedging Techniques Can be Used by a Mid-size Company. AV Akademikerverlag. 2012
  • Mitra, G. and Schwaiger, K. Asset and Liability Management Handbook. Palgrave Macmillan.. 2011
  • Morales, J.. Aspectos Contables de la Gestión del Riesgo de Tipo de Cambio (I). Revista Contable Vol. 56, pág. 8-27.. 2017
  • Morales, J., Delgado, D.. Foreign Currency Risk Management Practices in Spanish Companies: An empirical Analysis. Aestimatio. Vol. 14, pág. 128-163.. 2017
  • Van Deventer, D.R., Imai, K., Mesler, M.. Advance Financial Risk Management. Wiley Finance.. 2005
Recursos electrónicosElectronic Resources *
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The course syllabus and the academic weekly planning may change due academic events or other reasons.