Financial Reporting and Risk Measurement

Description of the course:
In today’s world of rapid information flows, rising volatility, regulatory concerns and oversight, prudent management increasingly requires reporting and measuring risk. Risk management establishes standards for aggregating disparate information, gathering market data, calculating risk measures and creating timely reporting tools for management market, credit, and operational risks. This course is designed to provide students with an overall understanding of the manner in which a business gathers, processes, and uses financial information.
Students are introduced to basic accounting concepts and procedures through problem assignments and projects. Emphasis is placed on developing an understanding of basic accounting processes and principles, and on preparation and analysis of basic financial statements. Also, this course is directed toward students interested in understanding how large-scale complex risk can be quantified, needs to be managed and architected. We identify the business and technical issues, regulatory requirements and techniques to measure and report risk across a major organization.

Learning Outcomes:
After studying this course, the students should be able to:
• Define bookkeeping and accounting and risks
• Explain the general purposes and functions of accounting
• Explain the differences between management and financial accounting
• Describe the main elements of financial accounting information – assets, liabilities, revenue and expenses
• Identify the main financial statements and their purposes.
• Comprehend the theory and practices of corporate financial reporting
• Use financial reporting theory and practices to analyze the risks of a company
• Design appropriate business policies and strategies to meet stakeholder and shareholder needs in the light of potential risks
• Explain the reasoning behind the rules underpinning corporate financial reporting and the history of their development
• Describe how the rules of corporate financial reporting effect the application of standards