*Please note that Track 6 is a NEW track, the information below is subject to change.
One of the ways managers can create value for shareholders is by managing risks associated with firms’ operations and cashflows or by reducing the uncertainty around the quality of their financial reports to lower the risk perception among investors.
In this course, students will learn about different risk management tools used by managers for managing operational risks such as prices of factors of production, financial risks such as interest rate risk and risks associated with cashflows such as exchange rate risk. Students will further learn the importance of assurance for the functioning of capital markets by reducing information risk.
Internal and external assurance, as provided by audit firms, is critical for the efficient allocation of resources. Assurance professionals assess different types of risks (e.g., financial reporting risk; litigation risk; risk of non-compliance with rules and regulations; and fraud risk) and how management mitigates those risks using internal controls. Of growing importance to firms and markets is also the assurance of non-financial information, including environmental, social, and governance information, reducing the risk of misstatements in these areas.