Syllabus of Advanced Financial Management

Lectures: 1 session / week, 3 hours / session

Recitations: 1 session / week, 1 hour / session

Course Objective

There are many types of risk management going on in different parts of a company at the same time. The most familiar loci of risk management are trading operations and the treasury office. But many other parts of the firm are involved in risk management. The marketing department designs types of contracts for customers that share risk. Business unit managers evaluate projects with different risk characteristics, and decide on ways to alter projects so as to minimize risk without sacrificing return. The tax, legal, and accounting departments are concerned with risk, with hedging, and with the corporate governance issues. At the highest level of the company key questions about the firm's strategy and its ability to fund its operations must be answered with an eye on the risks of each alternative and strategic decisions that can secure the greatest value for shareholders.

Each of these different risk management activities focuses on different aspects of risk management. The problem before a commodity trader is not the same problem that is before the business unit manager and not the same problem that is before the CFO. The problems facing each actor within the firm demand a focus on different risk related issues.


From the corporate finance side, this course builds on material developed in 15.434, Advanced Corporate Finance. From the risk management side, this course builds on the tools and techniques developed in 15.437, Options and Futures Markets.

Course Format

The course will be taught with a mixture of lectures presenting specific tools and outline of corporate problems and case discussions in which students attempt to apply the tools and concepts. Class participation is obviously critical. Outside of class students will have the opportunity to focus on key analytic tools and problem sets. The TA will set up 5 recitation sessions to offer students a chance to discuss the 4 problem sets. Students should read the relevant materials before the class covering those topics.


The course is offered only on a Pass/Fail basis. A passing grade is earned by (1) attendance, (2) general class participation, especially in the case analysis, and (3) obvious effort and accomplishment in mastering the basic tools, including the problem sets. Engagement is the key. The learning is a collective process accomplished with involvement on the part of all.

Additional References

Good textbooks to utilize as backup references are:

Brealey, Richard, Stewart Myers, and Franklin Allen. Principles of Corporate Finance. 9th ed. New York, NY: McGraw Hill Higher Education, 2007. ISBN: 758.

GE is HUGE tarp fund beneficiary

2009-11-05 10:07:15 by Lapis_Philosophus

GE has been regularly protected from the TARP rules. By taking advantage of its ownership of two tiny banks in Utah, GE was able to issue $80 Billion dollars worth of federally backed loans about one out of every four dollars available in the federal loan guarantee program.
And true to being a friend of the President, General Electric didn't have to go through any of the burdens other participants had to go through like the financial stress test. And now it seems they wont have to worry about any those pesky salary/compensation limits so Jeffrey Immelt and the senior management don't have to worry about the 14-18 Million in annual compensation they get with help from Uncle Sam

And, GE, maker of weapons ...

2012-01-31 16:11:37 by phantom_gecko

Mr. Dennis D. Dammerman served as the Management Director of General Electric Co., holding company of GEFS (Suisse) AG (also known as GE Capital Bank) and as its Chief Financial Officer from 1984 to 1994 and since 1995. Mr. Dammerman has exceptional leadership and financial management skills. Mr. Dammerman served as the Principal Executive Officer and Chairman of General Electric Capital Corp., (formerly, General Electric Credit Corp.). He has 38-year career at GE. He served as an Executive Officer of General Electric Company from 1998 to December 31, 2005 and also served as its Member of the Corporate Executive Office until 2005

You might also like:

Executive Testimony I: Advanced Project Management
Executive Testimony I: Advanced Project Management ...
LSBF ACCA P4 Advanced Financial Management, Key Facts on
LSBF ACCA P4 Advanced Financial Management, Key Facts on ...

ACCA Advanced Financial Management Notes

Advanced Financial Management PPT

ACCA papers P4 Advanced Financial Management

BPP Advanced Financial Management

Meaning of Advanced Financial Management