GRA 8517 Project Evaluation, Financing and Risk Management (2019/2020)

GRA 8517 Project Evaluation, Financing and Risk Management (2019/2020)

Course code: 
GRA 8517
Department: 
Leadership and Organizational Behaviour
Credits: 
5
Program of study: 
Executive Master of Management in Energy
Course coordinator: 
Jon Lereim
Product category: 
Executive
Portfolio: 
EMME - EMM specialisation in Energy
Semester: 
2020 Spring
Active status: 
Active
Teaching language: 
English
Course type: 
One semester
Introduction

This course is part of the Executive Master of Management in Energy in cooperation with BI Norwegian Business School and IFP School.

The topics in this course will cover the key concepts, tools and techniques of project finance and financial management and show students how to apply them to companies in the energy sector

Learning outcomes - Knowledge

The candidates will acquire indepth knowledge in the enterprise risk management linking corporate strategy to the business operations and financial performance at a given moment and over time.

The students learn basic knowledge in project financing and the associated risk assessments.

Learning outcomes - Skills

The students shall achieve skills on how to do enterprise risk analyses, and the candidates will learn how to measure and diagnose business performance, how to choose between competing investment proposals and select projects that create value, how to make financing decisions that optimize risk and return and how to value projects and businesses.

General Competence

The candidates shall be able to review the input variables to enterprise risk analyses and business performance recordings, and being able to critically reflect on the actual conditions and constraints present in various business environments.

The students shall reflect on dimensions linked to the dilammas on profitability versus sustainability and corporate social responsibility

Course content

Project Finance & Evaluation

  • Theory and practice of financing projects in the energy sector
  • Role of understanding, analyzing and anticipating political, technical and economic risks when evaluating a project finance plan
  • Project finance risk management techniques: contractual, operational, logistical…
  • Assessing strategic economic, industrial investment decisions
  • Illustration of the roles and interests of public, private and other stakeholders involved in a large energy project

Equity Analysis and Credit Rating

  • Equity valuation techniques: DCF, proxy multiples, sum of parts
  • Role of equity analysts in the capital markets and importance for the energy sector
  • Fundamentals of credit scoring: how do banks and credit ratings agencies assess the credit-worthiness of companies. Examples from the energy sector.

Energy Industry Risk Management

  • The Risk Management Process
  • Risk mapping
  • Risk mitigation
  • Prevention
  • Transfer
  • Financing
  • The Net Risk Exposure

Renewable Energy Project Financing

  • Intro : 3 main actors and their respective goals
  • Project Development
  • Regulation
  • Project Financing
  • Construction
  • Operations & Maintenance : quick overview
  • Case Study
Teaching and learning activities

1 ECTS credit corresponds to a workload of 26-30 hours.

Attendance to all sessions in the course is compulsory. If you have to miss part(s) of the course you must ask in advance for leave of absence. More than 25% absence in a course will require retaking the entire course. It's the student's own responsibility to obtain any information provided in class that is not included on the course homepage/ It's learning or other course materials.

This is a course with continuous assessment (several exam components) and one final exam code. Each exam component will be graded using points on a scale 0 -100. The components will be weighted together according to the information in the course description in order to calculate the final letter grade for the course. Students who fail to participate in one/some/all exam components will get a lower grade or may fail the course. Candidates may be called in for an oral hearing as a verification/control of written assignments.

Specific information regarding the points system and the mapping scale beyond the information given in the course description will be provided in class. This information may be relevant for requirements for term papers or other hand-ins, and/or where class participation can be one of several elements of the overall evaluation.

The course is a part of a full Executive Master of Management in Energy (EMME) and examination in all courses must be passed in order to obtain a certificate.

Software tools
No specified computer-based tools are required.
Qualifications

Granted admission to the Executive Master of Management in Energy programme. Please consult our student regulations.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA 85171
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
50Yes2 Hour(s)
  • No support materials
Individual The students are evaluated through an individual 2 hours exam, counting 50% of the final grade.
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA 85171
Grading scale:
Point scale
Grading rules:
Internal and external examiner
Resit:
All components must, as a main rule, be retaken during next scheduled course
50No4 Week(s)Group (2 - 8)The students are evaluated through a Case study group, counting 50% of the final grade.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:50
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • No support materials
Duration:2 Hour(s)
Comment:The students are evaluated through an individual 2 hours exam, counting 50% of the final grade.
Exam code:GRA 85171
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Exam category:Submission
Form of assessment:Written submission
Weight:50
Invigilation:No
Grouping (size):Group (2-8)
Support materials:
Duration:4 Week(s)
Comment:The students are evaluated through a Case study group, counting 50% of the final grade.
Exam code:GRA 85171
Grading scale:Point scale
Resit:All components must, as a main rule, be retaken during next scheduled course
Type of Assessment: 
Continuous assessment
Grading scale: 
ECTS
Total weight: 
100
Sum workload: 
0

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 5 ECTS credit corresponds to a workload of at least 135 hours.