FIN-3820: RISK MANAGEMENT
Final Project
OVERVIEW
For your final project, which is worth 25 percent of your total grade, you will communicate your knowledge of risk management with a research paper that analyzes the risk management practices of a real-world corporation. It should reflect both an academic and a professional viewpoint.
The body of your paper, not including a title page and any reference/citation pages, should be between 2500 and 3000 words. With a typical font and double spacing, this will be approximately 10 to 12 pages.
GENERAL PLAN
PAPER REQUIREMENTS
Obtain the most recent financial statements of a Fortune 500 financial institution of your choice. Carefully study the audited financial statements, including the Management Discussion and Analysis (MD&A) section, with emphasis on the lending and investment practices of the company. In addition, visit relevant company websites and obtain Moody’s and S&P 500 information as supplementals.
Provide an analysis of the risk management processes the institution uses, focusing primarily on:
Market risk.
Business/operational risk (including interest rate risk and exchange rate risk).
Financial risk.
Liquidity risk .
In your analysis, where necessary, create simulations from financial data obtained and cover the following:
Identify your company’s business and regulatory environment.
Discuss the traditional approaches used in the management of each category of risk listed above.
Explain the applicability, usefulness, and limitations of methodologies and models covered in the course (mainly VaR, RAROC, Black-Scholes, Altman’s Z-score, Vasicek’s and Merton’s models), and determine if any is used by your company.
Identify any risk management mistakes the company may be making or may have made in the past.
Provide recommendations and suggestions for areas in need of improvement.
Your paper should conform to APA style in terms of in-text citations and the list of works cited. It should display a clear style and proper grammar, spelling, and punctuation. It should discuss course concepts accurately and effectively.
GRADING CRITERIA
Below is a list of criteria that will be used to grade your paper:
Focus: Does the paper address the questions or tasks?
Completeness: Are all the elements of the assignment covered?
Depth: Does the paper address the topic in sufficient depth? Does it include and apply the text readings and other appropriate resources?
Critical Thinking: Are the relevant concepts explored and analyzed at an appropriate level?
Organization: Is the paper organized in a coherent and systematic manner? Are headings included?
Clarity: Is the writing clear and are the concepts articulated properly?
Use of Resources: Are paraphrasing and synthesis of concepts the primary means of response to the questions (as contrasted with excessive use of quotations)?
References and Citations: Are the sources cited correctly (APA style) within the text? Are all sources listed correctly on the Works Cited page? Does the paper adhere strictly to APA format?
The course site includes a link to the rubric that will be used to grade your paper.
