SFU 2999 Corporate Loan Risk Management
SFU 2999 Corporate Loan Risk Management
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.
- 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 - 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: Entrepreneurs vs. established businesses
- Theme 8: Analysis of retailers and wholesellers
- Theme 9: Analysis of service-rendering companies
- Theme 10: Analysis of real estate companies
- Theme 11: Analysis of acquisitions and other investing opportunities
Part 3 - A wholistic approach to business evaluation
- Theme 12: Analysis of strategies, plans and budgets
- Theme 13: Efficient management control
- Theme 14: Basic valuation methods
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.
Higher Education Entrance Qualification.
Basic knowledge in financial accounting and financial statement analysis.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Weight: 100 Grouping: Individual Duration: 72 Hour(s) Exam code: SFU 29991 Grading scale: ECTS Resit: Examination when next scheduled course |
| Activity | Duration | Comment |
|---|---|---|
Student's own work with learning resources | 40 Hour(s) | Watch 9 videos, including time for preparation |
Student's own work with learning resources | 50 Hour(s) | Text book and other published material |
Group work / Assignments | 60 Hour(s) | Exercises and business cases |
Student's own work with learning resources | 20 Hour(s) | Webinars, including preparation |
Examination | 30 Hour(s) |
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.