ELE 3770 Credit Risk Assessments
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
- Analyses of strategies, plans and budgets
- Management control systems
- Basic valuation methods
Students shall in along the way prepare for 13 themes that together form the content of the course. For each of these themes there will be videos, 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 four webinars, where the students can ask questions and where relevant topics are discussed in a virtual class room setting. There will also be two business cases that we expect the students to solve. 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
|Exam category||Weight||Invigilation||Duration||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination when next scheduled course
|100||No||3 Week(s)||Group/Individual ( 1 - 3)||Assignment, individual or in groups of Maximum Three students, Maximum 20 pages.|
|Form of assessment:||Written submission|
|Grouping (size):||Group/Individual (1-3)|
|Comment:||Assignment, individual or in groups of Maximum Three students, Maximum 20 pages.|
|Exam code:||ELE 37701|
|Resit:||Examination when next scheduled course|
|Workload activity||Duration||Type of duration||Comment student effort|
|Self study||30||Hour(s)||Watch videos on It's Learning, inclduding preparations|
|Self study||73||Hour(s)||Text book and other published material|
|Group work / Assignments||15||Hour(s)||To business cases|
|Teaching||10||Hour(s)||Four webinars, including preparations|
|Teaching||12||Hour(s)||Four three-hour sessions|
|Workload activity:||Self study|
|Comment:||Watch videos on It's Learning, inclduding preparations|
|Workload activity:||Self study|
|Comment:||Text book and other published material|
|Workload activity:||Group work / Assignments|
|Comment:||To business cases|
|Comment:||Four webinars, including preparations|
|Comment:||Four three-hour sessions|
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.
|Eklund, Trond; Knutsen, Knut||2011||Regnskapsanalyse: aktiv bruk av regnskapet||8. utg||Gyldendal akademisk|
|Eklund, Trond; Knutsen, Knut||2011||Hjelper til Regnskapsanalyse med årsoppgjør||5. utg||Gyldendal akademisk|