Advanced Topics in Corporate Finance and ERM Module

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Advanced topics in CFE can include a broad range of concepts, which vary in their degree of complexity. This module covers three concepts which can be directly applied within a company's ERM framework. The candidate will learn about the factors that affect strategic thinking (external forces, environmental analysis), the organizational characteristics that influence strategic decision-making (strategy, structure, controls, leadership) and how senior management uses these to evaluate and benchmark progress toward strategic goals.  Three applications of Extreme Value Theory (EVT) are covered to put the theory to work in a business context. The module leads a candidate through a strategic planning exercise while applying opportunity engineering (OE) concepts to help senior management make strategic decisions regarding a new product they would like to introduce to the market. You will also learn a technique to structure your ideas for effective communication.

By the end of the module, we expect that the candidates will be able to:

• Understand what is meant by strategic thinking
• Determine strategic questions related to Business Sustainability and Corporate Governance
• Understand heavy tailed, medium tailed and light tailed risks by evaluating risk loss studies
• Construct a high-level risk model and discuss limitations and parameters of EVT
• Apply EVT tools in a real-life business environment
• Evaluate the use of EVT on extreme-case operational risks such as business disruption risks
• Explain limitations regarding pooling of extreme-case operational risks such as business disruption risks
• Evaluate scenarios including scenarios for EVT events
• Develop a strategic plan
• Evaluate the impact of a strategic plan on the financial statement and capital resources of an entity
• Evaluate the strategic plan under different scenarios including EVT scenarios
• Apply best practice techniques to structure and communicate ideas logically and persuasively