Spring 2005 Finance 4913/5550 - Advanced Risk Management
Section 001 – TTH 9:00 – 10:15 BUS 123
Instructor –
Office Phone E-Mail Course web site
Related websites
Syllabus
Attachment
Tim Krehbiel
104B BUS
744-8660
TLK@okstate.edu
http://cba.okstate.edu/~tlk/
http://www.bus.okstate.edu/msqfe/
http://www.kiscommodities.com/
http://www.riskmetrics.com/
http://osu.okstate.edu/acadaffr/syllabusattachment.htm
Office Hours (Tentative 1/5/05)
Monday afternoon
2:00-3:30
Tuesday afternoon
2:00-3:30
Friday morning
9:00-10:30
Friday afternoon
2:00-3:30
Required Texts;
Financial Risk Manager Handbook by Phillipe Jorion, 2nd edition, 2003 John Wiley
and Sons
Risk Management is the set of activities with objective to identify, evaluate and respond
to risk exposures. Risk management has ascended in importance in recent decades due to
technological progress, development of new markets and regulatory changes.
Technological developments contributing to the risk management evolution include the
quantum change in computing capabilities and development of models capable of
isolating specific or firm wide risk exposures. Market developments contributing to the
risk management evolution include the widespread application of securitization processes
to the formerly bundled services of financial intermediaries and the development of
derivative markets of all types. Deregulation of commodity markets has produced an
environment similar to the financial services industry where each facet of previously
bundled transactions can be disassembled into components. The unbundling of
services/transactions has spurred the evolution of risk management as exposures to
specific risks inherent in a position can be evaluated and transferred in markets specific to
that risk exposure.
Learning Objectives –
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Create an understanding of the use of financial contracts to reshape risk profiles.
Refine understanding of risk evaluation techniques.
Develop evaluation and problem solving skills.
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Develop analytical and communication skills.
Course Calendar FIN 4913 Spring 2005
Date/Due Date
Test #1
Test #2
Test #3
Quizzes/Assign
Case Study
Total
Thursday February 17
Thursday March 31st
Thursday May 5th 8:00-9:50
100 points
100 points
100 points
125 points
75 points
475points
Spring 2005 – Advanced Risk Management
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Spring Break
Week 11
Week 12
Week 13
Week 14
Week 15
Week 16
Finals Week
10-Jan
17-Jan
24-Jan
31-Jan
7-Feb
14-Feb
21-Feb
28-Feb
7-Mar
14-Mar
21-Mar
28-Mar
4-Apr
11-Apr
18-Apr
25-Apr
2-May
Chapter 2
Chapter 3
Chapter 4
Chapter 30
Chapter 31
Chapter 32
Chapter 11,12
Chapter 13
Chapter 14
Chapter 15,16
Chapter 17
Chapter 18.19
Chapter 20
Chapter 21
Chapter 22
Chapter 23
Test #1
Test #2
Test #3
Attendance Policy:
You are expected to attend and take part in each class period. You are expected to
actively participate in the class. Active participants are expected to:
1.
2.
3.
4.
answer questions directed to the class,
ask questions to clarify ideas,
record notes,
participate in activities with guest speakers.
Active participation in class will improve your score on quizzes and exams.
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Bring your textbook to class. We will use material from the text during class.
Bring to class the calculator you will use on exams. Most of the financial decisions
we will investigate require that information be processed before effective decisions
can be made.
Bring an open and alert mind. “Minds are like parachutes they only work when
they’re open.”
You are expected to arrive in the classroom before the scheduled starting time. If you
arrive late, enter the room quietly and do not disturb the other class participants.
Exam/Quiz policy:
You can prepare a 3”x5” note card for exams only. On this card you can write or
print whatever course related material you would like. Each student is responsible for the
advance preparation of his or her own card. All 3”x5” cards will be turned in with
exams.
If you can not take an exam at the scheduled time, contact me before the scheduled
date of the exam. We will agree on a date for the makeup. Makeup exams will be
completed before the graded test will be returned to the class.
All test and quiz answers will be graded for correct punctuation and grammar. Test and
quiz answers submitted by students that are simply copies of class notes or text material
will receive zero credit. You must formulate your own answers from class and text
materials.
Quizzes:
Quizzes/assignments will be announced periodically throughout the semester. No
individual quiz/assignment will account for more than 40 points. Quizzes will be
announced prior to the quiz date. The format of quizzes will vary depending on the
subject matter to be tested.
3”x5” note cards are not permissible on quizzes.
If you cannot take a quiz at the scheduled time, contact me before the scheduled date of
the quiz. We will agree on a date for the makeup. Makeup quizzes will be completed
before the graded quiz is returned to the class.
Late work policy:
Assignments/Case study are due in class on the due date indicated. Assignments/case
study not turned in during class on the due date, are late. Late projects earn a maximum
of 75% if turned in one calendar day late, 60% if turned in two-calendar days late, 50% if
turned in three-calendar days late, zero if turned in more than three-calendar days late.
Turn in all late assignments to, the Finance Department Unit Assistant, in Business 332A.
Please ask her to record the date and time on the project.
Academic dishonesty policy:
Academic dishonesty will not be tolerated.
If I suspect a problem during an exam I will warn then move the affected persons.
Serious abuses will result in a zero for the test and initiation of University Academic
Dishonesty procedures.
Persons who submit answers to an essay exam question that are substantially similar in
content will earn zeros on that portion of the exam.
Persons who submit material for projects that is substantially similar in content will earn
zeros for that project.
Plagiarism:
It is increasingly easy to gain access to the ideas of others. Using someone else’s ideas
without providing proper citation is plagiarism. Plagiarism will not be tolerated. If your
contribution to an assignment is assembling the thoughts of others and pasting them in
the appropriate order let the reader know.
This is a matter of professional ethics as well as a legal concern.
Cite all sources from which material has been transferred substantially unedited to your
own work. This includes web sites and other Internet sources as well as all printed
resources. The objective of providing references is to allow the reader to locate each
source. An appropriate citation format will provide all the relevant details to locate the
cited work.
In the circumstance in which you use the ideas, data, analysis, etc. produced by others,
you become responsible for the accuracy and integrity of this material. As a professional
practice it is wise to question the veracity of any resource on which you are basing your
reputation.
If/when plagiarism is identified in material submitted for grading; the affected portion of
the assignment/test would earn a zero.
Turabian, Kate L., A Manual for Writers of Term Papers, Theses, and Dissertations, The
University of Chicago Press; is a valuable resource for determining the proper format for
references.
Disabilities:
If any member of this class feels that he/she has a disability and needs special
accommodations of any nature whatsoever, the instructor will work with you and the
Office of Disabled Student Services, 326 Student Union, to provide reasonable
accommodations to ensure that you have a fair opportunity to perform in this class.
Please (1) advise the instructor of such disability and the desired accommodations at
some point before, during, or immediately after the first scheduled class period and (2)
contact the Office of disabled Student Services so that they can provide the required,
written verification from that office to the instructor.