ELE 3770 Credit Risk Assessments

ELE 3770 Credit Risk Assessments

Course code: 
ELE 3770
Department: 
Accounting, Auditing and Business Analytics
Credits: 
7.5
Course coordinator: 
Tor Olav Nordtømme
Product category: 
Bachelor
Portfolio: 
Bachelor - Electives
Semester: 
2019 Autumn
Active status: 
Re-sit exam
Resit exam semesters: 
2019 Autumn
Resit exam info

Kurset ble ikke satt igang høsten 2018 eller høsten 2019 pga for få studenter. Det tilbys kontinuasjonseksamen høst 2019 for studenter som tidligere har gjennomført kurset.

Teaching language: 
Norwegian
Course type: 
One semester
Introduction

The organization of the lecturing activities is based on the flipped classroom 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.

Learning outcomes - Knowledge
  • 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

 

Learning outcomes - Skills
  • 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.
     
General Competence
  • 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

 

Course content

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
Teaching and learning activities

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.

Software tools
No specified computer-based tools are required.
Additional information

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.

Qualifications

Higher Education Entrance Qualification.

Required prerequisite knowledge

BØK 3422 Managerial Accounting, BØK 3434 Managerial Accounting and Finance, or equivalent

Exam categoryWeightInvigilationDurationGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
ELE 37701
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination when next scheduled course
100No3 Week(s)Group/Individual ( 1 - 3)Assignment, individual or in groups of Maximum Three students, Maximum 20 pages.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:No
Grouping (size):Group/Individual (1-3)
Duration:3 Week(s)
Comment:Assignment, individual or in groups of Maximum Three students, Maximum 20 pages.
Exam code: ELE 37701
Grading scale:ECTS
Resit:Examination when next scheduled course
Type of Assessment: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Self study30Hour(s)Watch videos on It's Learning, inclduding preparations
Self study73Hour(s)Text book and other published material
Group work / Assignments15Hour(s)To business cases
Teaching10Hour(s)Four webinars, including preparations
Teaching12Hour(s)Four three-hour sessions
Examination60Hour(s)Exam assignment
Expected student effort:
Workload activity:Self study
Duration:30 Hour(s)
Comment:Watch videos on It's Learning, inclduding preparations
Workload activity:Self study
Duration:73 Hour(s)
Comment:Text book and other published material
Workload activity:Group work / Assignments
Duration:15 Hour(s)
Comment:To business cases
Workload activity:Teaching
Duration:10 Hour(s)
Comment:Four webinars, including preparations
Workload activity:Teaching
Duration:12 Hour(s)
Comment:Four three-hour sessions
Workload activity:Examination
Duration:60 Hour(s)
Comment:Exam assignment
Sum workload: 
200

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.