COURSE NUMBER: MBA 237.11
This class is cross-listed with the EWMBA Program
COURSE TITLE: Risk Management
UNITS OF CREDIT: 1 Unit
INSTRUCTOR: Carlos Blanco,
Jean Hinrichs, Robert Mark
E-MAIL ADDRESSES: carlos@blackswanrisk.com, jhin3333@msn.com, bmark.blackdiamond@tmo.blackberry.net
CLASS WEB PAGE LOCATION (HTTP
URL): TBA
MEETING DAY(S)/TIME: Sundays
10:00AM – 6:00PM
Please note the non-standard format of this course
which meets all day on two Sundays: September 30 and October 14
PREREQUISITE(S): Core Finance
(MBA203)
CLASS FORMAT: Lecture and
class participation
REQUIRED
Essentials of Risk Management: McGraw Hill (2005): Crouhy,
Galai and Mark.
Harvard Case Study Notes on LTCM
PriceWaterhouseCoopers Report on NAB
Disney litigation document
BASIS FOR FINAL GRADE:
Class participation (25 %)
Individual Project (50%)
Group project (25%)
ABSTRACT OF COURSE'S CONTENT
AND OBJECTIVES:
This MBA level course on Enterprise Risk Management (ERM) provides a
comprehensive description and analysis of modern risk management, including
organizational issues, regulatory aspects, potential problem areas, and tools
to control and manage firm-wide risk with particular emphasis on market,
credit, and operational risk.
In today's world of multibillion-dollar credit losses and bailouts, as well as
new regulatory initiative such as the Sarbanes-Oxley (SOX), it has become
increasingly imperative for corporate leaders to monitor and manage risk on all
fronts. Risk Management introduces the foundation for creating an integrated,
consistent, and effective risk management strategy.
Our course presents a comprehensive examination of the modern risk management
function and provides an overview of how to design a firm-wide risk management
program as well as techniques to measure and manage market, credit and
operational risk.
The course is based on the rich practical and academic experience of the three
instructors, and provides an inside look at many aspects of financial risk
management covering policies, methodologies and infrastructure.
BIOGRAPHICAL SKETCHES:
Dr.
Carlos is a former VP, Risk Solutions at Financial Engineering Associates.
There, he worked over six years being an essential contributor in the
development of the energy and risk management models of the firm, and providing
strategic and tactical leading-edge risk advisory and educational services to
over 500 energy and commodity trading firms and financial institutions
worldwide. He also managed the development and execution of short-term and
long-term market and product strategic plans and created and managed the world-class
support and professional services department within the firm.
Prior to FEA, Carlos worked for an Emerging Markets hedge fund and an asset
management firm in
Jean Hinrichs,
CIA, CFE
Jean Hinrichs is a senior enterprise risk management
executive with a distinguished background in audit, risk management, regulatory
compliance, and corporate governance related to asset management, credit cards,
and payment systems. Jean is the former Chief Risk Officer at Barclays Global
Investors (BGI). Her global responsibilities included Legal, Compliance, Credit
and Market Risk, Operational Risk, Internal Audit, Insurance, and Corporate
Security. BGI is one of the largest institutional investment managers in the
world with over $1 trillion in assets under management across a broad range of
products and business lines. Jean served on the Executive Management Committee,
Governance and Control Committee, three boards for Japanese subsidiaries, and
as Chief Fiduciary Officer for the
Jean was publicly recognized for "radically upgrading approach to risk
management and analytics" resulting in BGI being awarded 2003 Buy-Side
Risk Manager of the Year by Risk Waters Group. She designed and implemented
significant enhancements to revenue-producing initiatives through fund
restructures and regulatory exemptions. Jean redesigned the global risk
assessment methodology and reporting to comply with anticipated regulatory
requirements of Sarbanes-Oxley, Basel II, CP 195, and other new investment and
accounting requirements.
Prior to BGI, Jean served as General Auditor of the San Francisco Federal
Reserve Bank where she specialized in controls over payment systems, including
development of innovative audit approaches for distributed processing and
external computer connections that were adopted by all twelve reserve banks.
Prior to the San Francisco Federal Reserve Bank, Jean held a variety of
increasingly responsible positions at Unocal Corporation where she led the
restructure and consolidation of several Area Internal Audit groups at
corporate headquarters in
Jean earned a MBA from
Robert Mark, Ph.D.
Dr. Robert M. Mark is the Chief Executive Officer of Black Diamond which
provides corporate governance, risk management consulting and transaction
services. He serves on several Boards such as the Fields Institute for Research
in Mathematical Sciences, IBM's Deep Computing Institute, Checkpoint
Prior to his current
position, he was the Senior Executive Vice-President and Chief Risk Officer
(CRO) at the Canadian Imperial Bank of Commerce (CIBC). Dr. Mark was a member
of the Management Committee. Dr. Mark's global responsibility covered all
credit, market and operating risks for all of CIBC as well as for its
subsidiaries. Prior to his CRO position, he was the Corporate Treasurer at
CIBC.
Prior to CIBC, he was the partner in charge of the Financial Risk Management
Consulting practice at Coopers & Lybrand(C&L). The Risk Management
Practice and C&L advised clients on risk management issues and was directed toward financial institutions and
multi-national corporations. This specialty area also coordinated the delivery
of the firm's accounting, tax, control, and litigation services to provide
clients with integrated and comprehensive risk management solutions and
opportunities.
Prior to his position at
C&L, he was a managing director in the Asia,
He earned his Ph.D., with a dissertation in options pricing, from