Practice of Finance: Advanced Corporate Risk Management

Photograph of a busy trading floor.

The trading floor at the Chicago Board of Trade Futures market. Image by Jeremy Kemp on Wikipedia.


MIT Course Number


As Taught In

Spring 2009



Cite This Course

Course Description

This is a course in how corporations make use of the insights and tools of risk management. Most courses on derivatives, futures and options, and financial engineering are taught from the viewpoint of investment bankers and traders in the securities. This course is taught from the point of view of the manufacturing corporation, the utility, the software firm—any potential end-user of derivatives, but not the dealer. Most related courses focus on the extensive taxonomy of instruments and the complex models developed to price them, and on ways to exploit mispricing. While this course will make use of some of these pricing models, the focus is on how corporations use the insights and models to improve their operations, to increase the value of their real assets, or to create the financial flexibility necessary to implement their core strategy.

Parsons, John. 15.997 Practice of Finance: Advanced Corporate Risk Management, Spring 2009. (MIT OpenCourseWare: Massachusetts Institute of Technology), (Accessed). License: Creative Commons BY-NC-SA

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