Executive Programs In Finance

Executive Development Program in Financial Data Analytics - Syllabus

Module Name

Topics

Financial Statement Analysis 

• Balance Sheet, Income Statement, Cash Flow Statement, Understanding the Financial Statements and their interlinking, Financial Ratios, Ratio Analysis.
• Hands-on in Excel

Time Value of Money 

• Present Value (single and multiple cash flows), Future Value (single and multiple cash flows), Annuity, Perpetuity, Growing Annuity. Application: Loan Amortisation, Compounding the interest rate.
• Hands-on in Excel

Analysis of Bonds & Long-Term Financing 

• Valuation of bonds, analysis of risk in bond including duration and convexity
• Hands-on in Excel

Basic Portfolio Analysis 

• Return, risk, risk premium, Markowitz Portfolio Theory (two-assets and multi-assets portfolio), Minimum variance portfolio, efficient frontier, Capital Market Line
• Hands-on in Excel

Valuation of Equity and Firm/Business 

• Dividend discount model, return on equity, cost of equity (Gordon-Growth model).
• Security Market Line (CAPM) (Cost of equity), Analysis of Beta, Weighted Average cost of capital (WACC).
• Free Cash Flow to Equity (FCFE), Free Cash Flow to the firm (FCFF), Discounted cash flow approach to equity and business valuation.
• Relative Valuation approach to valuation.

Capital Structure Analysis 

• Modigliani-Miller Theorem (with and without taxes)
• Financial distress and cost of financial distress
• Static tradeoff theory, Pecking order theory and Windows of opportunity theory

Capital Budgeting Analysis 

• Net Present Value, Internal Rate of Return (IRR), Payback period

Financial Derivatives 

• Basics of Forward and Future
• Basics of Option
• Option trading strategies

Value-at-Risk Estimation and Backtesting 

• Historical Simulation
• Simple Variance based approach
• Risk Metrics
• Monte Carlo Simulation

Leasing 

• Operating lease and financial lease

Linear Regression 

• Single and Multiple Linear Regression, Modelling and Prediction (Examples using financial data)

Predicting Binary Outcomes (Credit Prediction)

• Logistic Regression

Decision Tree

• Decision tree analysis

Executive Development Program In Applied Financial Risk Management - Syllabus

Module Name 

Topics

Financial Risk Management 

• Basics of Financial Risk Management
• Fundamental Probability Theory
• Brief Overview of Financial Derivatives

Market Risk Analysis for single asset 

• Nonparametric and parametric approaches to estimate VaR and Expected shortfall
• Historical Simulation
• Monte Carlo Simulation
• Risk Metrics
• GARCH
• EGARCH
• GJRGARCH and other GARCH family models
• Extreme Value Theory
• VaR Evaluation: Back testing
• Market Risk Analysis
• For portfolio and an asset influenced by various factors like Standard Covariance/Correlation approach
• Risk Metrics
• Monte Carlo Simulation
• Multivariate GARCH
• VaR of factors

Risk Measurement in Fixed Income Markets

• Duration based partial revaluation approach (Historical Simulation), Cash Flow mapping

Credit Risk Measurement 

• Introduction to credit risk
• Default Risk
• Managing credit risk
• Credit Metrics
• Default probabilities
• Agency ratings
• Credit scoring and Internal rating models
• Structural models for credit risk (Merton, KMV), Reduced form models, Logistic model for loan default evaluation
• LGD Estimation: LGD model methodologies; Application uses of LGD
• Exposure at Default: EAD Modelling
• Expected and unexpected credit loss

Operational Risk Measurement 

• Introduction to operational risk with evidence of operational failures
• Estimating VaR for operational risk (Aggregate Loss Distribution/LDA) using Monte Carlo Simulation
• Operational risk management framework
• Operational risk process models Basics of Liquidity Risk: Liquidity Adjusted VaR under normal and stressed market

Asset Liability Management in Banks