ELE 3770 Credit Risk Assessments
ELE 3770 Credit Risk Assessments
This is a course, which from the fall semester of 2017 is fully digitalized. There will be no traditional class room lecturing in the course, but the lecturing will take place in the form of thematic videoes, cases and webinars. The organization of the lecturing activities is based on the flipped claasroom concept. This requires extra efforts from the students and a well-balanced progression througout the semester.
The purpose of the course is to give the students a good introduction to methods for assessing credit risk, by having a critical view on historical financial data as well as by focusing on different types of business risk and the assessment of management's ability to execute the strategies and necessary actions.
- Understanding various types of information that can be extracted from the financial statements and how historical accounting data must be interpreted and adjusted individually to increase its validity and reliability.
- An understanding of the inherent risik in business enterprises, with a special focus on various industry-related risk
- An understanding of the need to analyze the company's ability to direct and control its activities towards overall goal in an effecient way and that value creating strategies are executed in real life.
- An understanding of the difference between the booked equity and expeced market value of a firm as well as a basic conceptual understanding of company valuation
- Being able to utlize tradtional methods for financial statement analyses.
- Being able to make relevant adjustments on financial data
- Being able to identify relevant business risik and the consequences of this on future credit risk
- Analyze the credit risk and present it for the decision maker.
- Reflect on how a wholistic understanding of the enterprise and its industry and its risks are crucial to good credit risk assesment
- Reflect on the need to interpret and analyze both quantitative and qualitative information
Part 1 - Traditional areas of analysis
- Financial statements as source of information
- Measuring growith and profitability
- Measuring cash flows and operational degree of freedom
- Sensitivty analyses
Part 2 - Industry related issues
- Risk understanding
- Entrepreneur culture vs. established businesses
- Analysis of retail business
- Analysis of service-rendering companies
- Analysis of real estate business
- Analysis of mergers and other investment projects
Part 3 - A wholistic approach
- New customers vs. assessment of existing credit facilities
- The ability to efficiently focus on long-term targets
- Valuation methods
Students shall in advance prepare for 13 themes that form the framework around equally many lecturing vidoes. Before each video is published, there will be tips to students on how to prepare, such as relevant chapters in the text book, areas for own reflection and more. During the semester there will be five webinars, where the students can ask questions and where relevant topics are discussed in a virtual class room setting. There will also be one case to each of the three main parts of the course, which we expect the students to solve. There is also a text exam published 14 days before the exam. There will also be a discussion forum on Itslearning for communication throughout the semester.
For electives re-sit is normally offered at the next scheduled course. If an elective is discontinued or is not initiated in the semester it is offered, re-sit will be offered in the electives ordinary semester.
Higher Education Entrance Qualification.
BØK 3422 Managerial Accounting, BØK 3434 Managerial Accounting and Finance, or equivalent
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 100 Grouping: Individual Support materials:
Duration: 4 Hour(s) Exam code: ELE37701 Grading scale: ECTS Resit: Examination when next scheduled course |
| Activity | Duration | Comment |
|---|---|---|
Student's own work with learning resources | 39 Hour(s) | Watch 13 videos on It's Learning, inclduding preparations |
Student's own work with learning resources | 70 Hour(s) | Text book and other published material |
Group work / Assignments | 30 Hour(s) | Three business cases |
Student's own work with learning resources | 16 Hour(s) | Five webinars, including preparations |
Group work / Assignments | 15 Hour(s) | Test exam, including preparations |
Examination | 30 Hour(s) | Exam, including preparations |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.