SFU 2999 Corporate Loan Risk Management

SFU 2999 Corporate Loan Risk Management

Course code: 
SFU 2999
Department: 
Accounting, Auditing and Business Analytics
Credits: 
7.5
Course coordinator: 
Tor Olav Nordtømme
Product category: 
Executive
Portfolio: 
Course in Banking and Finance
Semester: 
2018 Spring
Active status: 
Active
Teaching language: 
Norwegian
Course type: 
One semester
Introduction

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, exercises, cases and webinars.  The organization of the lecturing activities is based on the blende learning concept.  This requires extra efforts from the participants and a well-balanced progression througout the semester.

The purpose of the course is to give the participants 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.
Learning Outcome - Reflection
  • 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 - A critical view on traditional financial statement analysis

  • Theme 1: Financial statements as source of information
  • Tkeme 2: Measuring growith and profitability
  • Theme 3: Measuring cash flows and operational degree of freedom
  • Theme 4: Sensitivty analyses
  • Theme 5: What the financial statements will not tell us

Part 2 - Increased knowledge of industry related issues

  • Theme 6: Understanding risk
  • Theme 7: Analysis of wholesalers and retail businesses
  • Theme 8: Analysis of service-rendering companies
  • Theme 9: Analysis of real estate business
  • Theme 10: Analysis of mergers and other investment projects

Part 3 - A wholistic approach to business evaluation

  • Theme 11: Entrepreneur culture vs. existing operations
  • Theme 12: New customers vs. assessment of existing credit facilities
  • Theme 13: Strategic decisions and ambitions
  • Theme 14: The ability to efficiently focus on long-term targets
  • Theme 15: Valuation methods
Learning process and requirements to students

Partcipants shall in advance prepare for 15 themes that form the framework around equally many lecturing vidoes and sets of exercises.  Before each video is published, there will be tips to participants on how to prepare, such as relevant chapters in the text book, areas for own reflection and more.  During the semester there will be webinars, where the participants 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 participants to solve. 

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

Higher Education Entrance Qualification.

Required prerequisite knowledge

Basic knowledge in financial accounting and financial statement analysis.

Exam categoryWeightInvigilationDurationGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
SFU 29991
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination when next scheduled course
100No72 Hour(s)Individual
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:No
Grouping (size):Individual
Duration:72 Hour(s)
Comment:
Exam code:SFU 29991
Grading scale:ECTS
Resit:Examination when next scheduled course
Exam organisation: 
Ordinary examination
Total weight: 
100
Workload activityDurationType of durationComment student effort
Self study40Hour(s)Watch 15 videos, including time for preparation
Self study50Hour(s)Text book and other published material
Group work / Assignments60Hour(s)15 sets of exercises and three business cases
Self study20Hour(s)Webinars, including preparation
Examination30Hour(s)
Expected student effort:
Workload activity:Self study
Duration:40 Hour(s)
Comment:Watch 15 videos, including time for preparation
Workload activity:Self study
Duration:50 Hour(s)
Comment:Text book and other published material
Workload activity:Group work / Assignments
Duration:60 Hour(s)
Comment:15 sets of exercises and three business cases
Workload activity:Self study
Duration:20 Hour(s)
Comment:Webinars, including preparation
Workload activity:Examination
Duration:30 Hour(s)
Comment:
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.

Talis literature

Obligatorisk/Compulsory

Book
Authors/Editors År Tittel Edition Publisher StudentNote
Christian Petersen; Thomas Plenborg; Finn Kinserdal 2017 Financial Statement Analysis   Fagbokforlaget