SFU 2997 Corporate Loan Risk Management

APPLIES TO ACADEMIC YEAR 2016/2017
Norwegian version

SFU 2997 Corporate Loan Risk Management


Responsible for the course
Emanuel Blattner

Department
Department of Accounting - Auditing and Business Analytics

Term
According to study plan

ECTS Credits
15

Language of instruction
Norwegian

Introduction
The course covers issues related to credit risk assessments of private businesses. The focus of the course is the ability to serve debt by analyzing future net cash flows and capital requirements. Moreover best practices will be addressed.

This course in combination with SFU 2990 Credit and Safe Deposit Law are approved as bachelor programs in the Bachelor of Management degree.


Learning outcome
Acquired knowledge
Students must be able to understand important concepts within the credit risks analysis discipline:

  • Have a good understanding of the concept credit risk analysis and risks related to private business exposures.
  • Understand the basic requirements for a private business to survive.
  • Understand how to use information from financial statements in a credit risk analysis.

Acquired skills
Students must be able to evaluate the credit risk by the use of relevant models and tools.
  • Be able to correct and group financial information to be used in a credit risk analysis.
  • Be able to practice models to prepare a basis for decisions.
  • Analyze the credit risk and present it for the decision maker.

Reflections
Students must be capable of demonstrating an ability to critically reflect upon their own role and work.
  • Understand the importance of analyzing the credit risk.
  • Understand the role of a credit risk analyst.
  • Basic knowledge of best practices.

Prerequisites
Prerequisites are knowledge of financial accounting and basic financial statement analysis.

Compulsory reading
Books:
Eklund, Trond og Knut Knutsen. 2011. Hjelper til Regnskapsanalyse med årsoppgjør. 5. utg. Gyldendal akademisk
Eklund, Trond og Knut Knutsen. 2011. Regnskapsanalyse : aktiv bruk av regnskapet. 8. utg. Gyldendal akademisk
Øysteind D. Fjeldstad og Randi Lunnan. 2014. Strategi. Siste utgave. Fagbokforlaget

Recommended reading

Course outline
The following main topics will be covered:
  • Correcting and assessing financial data and other information prior to analyzing
  • Ratio analysis
  • Cash flow analysis
  • Future capital requirement
  • Required future net internally generated cash flow
  • Risk classification and models for predicting bankruptcy
  • Credit risk and portfolio analysis
  • Loan review
  • Best practices

Computer-based tools


Learning process and workload
The course duration is one semester part-time study. Thre study sessions (3,3,2) will be offered during the course. These study sessions will cover the most essential parts of the curriculum through lectures and teamwork.



Recommended workload including all activities:

Activity
Hours
Attendance at lectures
60
Preparation for class
90
Project assignment
150
Self-tuition and study groups
96
Exam
4
Total recommended workload
400


    Examination
    The exam consists of a project assignment and a individual eksam. The project assignment consists of a process where participants present a paper based on topics from the project assignment. The project assignment i handed out at the start of the course. After feedback and comments the paper can be changed as long as the programme proceeds. It is the final version of the project assignment that form the basis for grades in the project assignment part.

    The project assignment counts for 40 % of the exam. The individual final exam of 4 hours counts for 60 % ogf the exam.
    Examination code(s)
    SFU 29971 - 4 hours written exam which accounts for 60% of the grade in the course SFU 2997, 15 ECTS.
    SFU 29972 - project assignment consisting of 20 pages, which accounts for 40% of the grade in the course SFU 2997, 15 ECTS.

    Examination support materials
    All aids are allowed at the exam.

    Re-sit examination
    A re-sit is held in connectoin with the next regular exam in the course

    Additional information

    Semesters

    Translations