STRATEGIC FINANCE & RISK MANAGEMENT (3 SCU)

Learning Outcomes:

(I) Upon succesful completion of this course, students are expected to be able to implement IT in financial issues; to estimate the cost of capital; to evaluate and recommend financial solutions of business lifecycle and corporate actions; evaluate the roles of corporate governance in value creations; and to evaluate corporate governance issues in Indonesia and recommend solutions for improvements. (II) Upon succesful completion of this course, students are expected to be able to identify and respond to emerging local and global business risk and opportunities behind it; to demonstrate a working knowledge of the financial risk management profession in the financial markets, institutions as well as individual company; to display creative thinking skills to construct and propose best alternative solutions to practical financial risk management issues to increase company value; and to construct a strategic decision to choose the best solution for practical financial issues

Topics:

(i) This course is intended to tailor the resource allocation to specific situations faced by a corporation. The emphasis is on the value creation from aligning financial strategies with business strategies. The value creation is also observed from the pursuit of proper and efficient practice in the administration of a corporation through the implementation of Good Corporate Governance. The unique situations in the implementation of Corporate Governance in Indonesia are much appreciated in this course. The approach in this course is to familiarize students with real-life situations in conducting financial affairs during their tenures as a person in charge of finance function within their corporation.
(ii)This course introduces students to strategic value and risk management. Students will learn about the various facets of risk management including macro-environment, industry cycles, strategic, implementation linked, competitor driven, financial, operational, environmental, compliance, corporate governance and reputation risk. Through practical case studies they will be taught about how to manage these risks, lessons learnt from previous crisis and risk management tools such as hedging, cash flow management and portfolio diversification. Students will also learn about Economic Value Added and how strategic decisions by management would increase the value.