FINANCIAL RISK MANAGEMENT
Risk is an abstract notion, yet it is part of any managerial decision. Identifying financial risks, understanding their impact and how to mitigate them is important. But equally important is to make sure senior non-financial executives can comprehend the financial implications of the decisions they make and the trade-offs they face.
This module aims at providing an all-round view on what financial risk management represents, from the identification of risks and their quantification to the decisions to be taken and their implementation. This topic is incredibly vast, from the philosophical view of what “risk” is – where the idea to provide expectations on a dimension that exhibits randomness might be questionable – to the very concrete requirement to have a strategy towards it. This topic is probably the most quantitative one of all, even though the big cases of mismanagement by far didn’t occur just because of a wrong quantitative appreciation.
Participants following this module will:
• Be knowledgeable about the history of the various sources of (financial) risks, their significance and their evolution.
• Master the various widely-known techniques to quantify the main risks faced by corporates: interest rates, foreign exchange rates, credit risk, liquidity risk, and commodity risks for some.
• Master the range of financial techniques and derivatives available for the transformation of risk exposures.
• Be able to act as true risk managers, capable to establish policies with the top management and guarantee their implementation.
ABOUT THE FACULTY
Hugues is professor of Finance at the Solvay BS. He is also co-founder of FinMetrics, a Swiss company providing cutting-edge advisory and the development of a platform dedicated to the monitoring of the financial corporate activity since then.
Furthermore, he is manager of the Finance module of the Swiss Federal Expert Accountancy certification, member of the scientific committee of the Euronext BEL20 Index.