Applied Finance, Credit and Crime Risk Management by IIT Roorkee
Embark on a cutting-edge exploration at the nexus of finance and technology with IIT Roorkee’s Applied Finance in Risk Management program. In the era of cryptocurrencies and rapid technological advancements, this 90-hour program is designed to equip participants with a profound understanding of risk management and financial stability. Delivered through dynamic live sessions, the curriculum […]
Embark on a cutting-edge exploration at the nexus of finance and technology with IIT Roorkee’s Applied Finance in Risk Management program. In the era of cryptocurrencies and rapid technological advancements, this 90-hour program is designed to equip participants with a profound understanding of risk management and financial stability. Delivered through dynamic live sessions, the curriculum integrates Harvard case studies and project-based teaching, ensuring a hands-on approach to mastering essential skills. Whether you’re a finance professional, risk analyst, or seeking career advancement in the industry, this program offers a unique opportunity to navigate the complexities of the financial landscape. Join us at IIT Roorkee and redefine your expertise in applied finance for a future shaped by innovation and digital disruption.
| Program Director | |
Dr. Anil K Sharma |
Dr. Anil K. Sharma is a Professor at the Department of Management Studies, IIT Roorkee, with over 27 years of teaching experience. He holds an M.Com, M.Phil, and a Ph.D. in Financial Management from Panjab University Chandigarh. He has published 170 research papers, guided 23 PhD scholars, and serves as chief editor and reviewer for several journals. He has also been a visiting faculty at institutions like AIT Bangkok and IIMs. Dr. Sharma is a registered consultant with the Asian Development Bank and an Honorary Research Fellow at Metharath University, Thailand. |
| Program Faculty Members | |
Associate Prof. Jogendra Kumar Nayak |
Dr. Jogendra Kumar Nayak is an Associate Professor in the Department of Management Studies at IIT Roorkee, India, since 2012. He holds a Ph.D. from IIT Kharagpur and specializes in marketing research, pricing strategies, and B2B trading. An expert in capital markets and investment strategies, he emphasizes fundamental analysis. Dr. Nayak has guided nine research scholars and currently supervises six more. He has published in reputed journals, including the Journal of Business Ethics and Journal of Cleaner Production, and serves as a reviewer for several international journals. |
Prof. Jatinder Pal Singh |
Dr. Jatinder Pal Singh is a Professor of Finance at IIT Roorkee, reemployed after retiring in 2022. He received the “Outstanding Teacher Award” in 2018. A Fellow of ICAI and ICSI, and an Associate Member of ICMAI and IEI, he holds postgraduate degrees in Physics and Mathematics and a law degree. His research focuses on econophysics, mathematical finance, financial risk management, international finance, and corporate governance. |
Prof. Piyush Pandey |
Dr. Piyush Pandey is an Assistant Professor of Finance at IIT Bombay’s Shailesh J. Mehta School of Management and Associate Faculty at C-MInDS. He earned his Ph.D. in Finance from Delhi University and has industry experience in equity research. His research focuses on investment management, banking, and financial derivatives. He has led a major government-funded research project and published work in renowned international journals. |
Prof. Smita Kashiremka |
Dr. Smita Kashiramka is a Professor of Finance at IIT Delhi’s Department of Management Studies. She holds a Ph.D. in Mergers and Acquisitions from BITS Pilani and has over 19 years of academic and research experience. Her expertise includes financial institutions, corporate finance, and banking. She has been a guest lecturer at institutions like IIFT New Delhi, IIM Raipur, and IIT Jammu. Dr. Kashiramka has published in renowned journals and presented at international conferences. She has also led research projects funded by organizations such as the Bill and Melinda Gates Foundation and the Government of India. |
| Industry Experts | |
Surbhi Gupta |
Surbhi Gupta is a Risk Analytics Associate at Morgan Stanley, specializing in data analytics and equity research. She holds an M.Com from Delhi University and a Ph.D. in Investment Finance from IIT Roorkee. Surbhi has published and presented research papers in reputable journals and conferences, establishing herself as an expert in investment finance in both industry and academia. |
Nikhil Parulkar |
Nikhil Parulkar served as the Vice President and Head of the Market Intelligence Unit at RBL Bank Ltd from 2015 to 2020. He led a team of intelligence analysts handling assignments such as pre-transaction due diligence, asset tracing, fraud investigations, and problem-solving for the bank’s wholesale banking division. Nikhil has over 20 years of experience in banking and consulting. |
Introduction
Business Accounting & Analysis
Strategic Cost Management
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5
Absorption costing, marginal costing, Activity based costingChoosing the right costing method is crucial for understanding product profitability. This session explores three key approaches:
Absorption Costing: This traditional method allocates all costs (fixed & variable) to produced units, providing a clear picture of product cost for inventory valuation and financial reporting. Think of it as the "full picture" cost.
Marginal Costing: This method focuses on short-term decisions and analyzes variable costs only. It calculates the contribution margin (revenue minus variable costs) to assess the impact of pricing and volume on profitability. Think of it as the "variable cost" focus.
Activity-Based Costing (ABC): This advanced method goes beyond simple allocation. It links overhead costs to specific activities that drive them. ABC offers a more accurate view of product profitability and identifies areas for cost reduction. Think of it as a "cost by activity" breakdown.
Understanding these methods empowers you to make informed decisions about production, pricing, and resource allocation. -
6
Case studies on marginal costing
This session brings marginal costing to life with captivating case studies. We'll explore how businesses across industries have utilized marginal costing to make strategic decisions -
7
Case studies on activity based costing
This session delves into the practical application of Activity-Based Costing (ABC) through insightful case studies. We'll explore how companies across industries leveraged ABC to gain a deeper understanding of their costs
Corporate Finance
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8
Conceptual discussion, Time value of money - Discussion and problem solving
This session dives into the fundamental concept of Time Value of Money (TVM). We'll explore the principle that a dollar today is worth more than a dollar tomorrow. This discussion will unpack the reasons behind TVM, including:
Earning Potential: Money invested can grow over time through interest or returns, making a current dollar more valuable.
Inflation Erosion: Over time, inflation reduces the purchasing power of future dollars. -
9
Valuing capital investment projects, Case: Phuket Beach Hotel
This case study explores how the Phuket Beach Hotel can make informed decisions about capital investment projects. We'll analyze two potential scenarios:
Leasing Space: A karaoke pub chain proposes leasing unused hotel space for a fixed fee.
Building Their Own Pub: The hotel considers developing the space into their own karaoke pub. -
10
Cash flow estimation, Case: Wonder Kidz Franchise
This case study delves into the world of franchise ownership by analyzing the cash flow of a potential Wonder Kidz franchise. We'll explore the key factors that influence a franchise's cash flow, including:
Startup Costs: Initial investment required for franchise fees, equipment, and renovations.
Revenue Streams: Tuition fees, after-school program charges, and potential product sales.
Operating Expenses: Rent, salaries, marketing costs, and supplies. -
11
Cost of capital, Case: Frozen food products
This case study dives into the world of frozen food production, specifically focusing on the cost of capital for a frozen food company. We'll explore how the company determines the minimum acceptable return it should expect from an investment in a new line of frozen food products.
Business Valuation
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12
Conceptual and fundamentals' discussion. Discounted cash flow model. Case study:The Next India Traveler: A valuation challenge
This session delves into the core concept of Discounted Cash Flow (DCF) valuation, a fundamental tool for appraising companies. We'll explore how the future cash flow projections of a company are converted into a present value, considering the time value of money. -
13
Case study:The Next India Traveler: A valuation challenge
Embark on a journey to unlock the valuation of The Next India Traveler. This case study presents a challenging puzzle: determining the company's true worth.
We'll delve into the complexities of valuing a travel company with a disruptive business model. Traditionally used valuation methods might not fully capture:
High Growth Potential: How will The Next India Traveler's innovative approach translate into future cash flows?
Market Uncertainty: How do we account for the ever-evolving Indian travel landscape and its impact on the company's value?
Investment Analysis
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16
Mean-varinace theory, CAPM and Sharpe ratio
This session explores the fundamentals of modern portfolio theory, a cornerstone of investment management. We'll delve into three key concepts that help investors navigate the risk-return trade-off:
Mean-Variance Theory: This theory focuses on how the average return (mean) and the level of fluctuations (variance) of an investment or portfolio influence decision-making. Investors aim to maximize returns while minimizing risk.
Capital Asset Pricing Model (CAPM): This model helps estimate the expected return of an investment based on its market risk. It assumes investors are rational and risk-averse, seeking higher returns only if they take on more risk.
Sharpe Ratio: This metric measures the excess return (return above the risk-free rate) per unit of risk (volatility) for an investment or portfolio. A higher Sharpe Ratio indicates better risk-adjusted performance. -
17
Case studies: Parilament elections impact on Indian capital market, Alex Sharpe's portfolio.
This session brings modern portfolio theory to life with two captivating case studies:
Parliament Elections and the Indian Capital Market: We'll analyze how the outcome of Indian parliamentary elections can impact the stock market. You'll learn to:
Identify potential risks associated with political events.
Assess how these risks might influence different asset classes within the Indian capital market.
Develop strategies to manage portfolio risk during periods of political uncertainty.
Alex Sharpe's Portfolio: We'll delve into Alex Sharpe's investment portfolio and utilize the Sharpe Ratio to evaluate its risk-adjusted performance. Through this case, you'll gain insights into:
Calculating the Sharpe Ratio for a real-world portfolio.
Interpreting the Sharpe Ratio to understand the trade-off between Alex's portfolio return and its risk.
Identifying potential diversification opportunities to improve the portfolio's risk-return profile.
Financial Derivatives
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19
Conceptual and fundamentals' discussion on Forwards, Futures, Options.
This session delves into the world of derivatives, financial instruments whose value is derived from the value of underlying assets like stocks, commodities, or currencies. We'll explore three key types of derivatives:
Forwards: These are private agreements between two parties to buy or sell an asset at a predetermined price on a specific future date. They are customized contracts and are not traded on an exchange.
Futures: Similar to forwards, futures contracts lock in a price for buying or selling an asset on a future date. However, they are standardized contracts traded on an exchange, ensuring greater liquidity and regulatory oversight.
Options: These contracts grant, but don't obligate, the buyer the right to buy (call option) or sell (put option) an asset at a certain price by a certain date. Options offer flexibility and the potential for leveraged gains, but also involve the risk of losing the premium paid for the option if not exercised. -
20
Commodity derivatives with live examples and works sheet problems.
This session dives into the exciting world of commodity derivatives! We'll explore how these financial instruments allow you to manage risk and potentially profit from fluctuations in the prices of commodities like oil, gold, or wheat. -
21
Commodity derivatives with live examples and works sheet problems.
Get ready to dive into the dynamic world of commodity derivatives! This session equips you to understand, analyze, and potentially profit from price fluctuations in commodities like oil, gold, or wheat.
Overview of Risk Management
Quantitative Foundations for Financial Risk Management
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23
Computational fiance, financial derivatives, pricing of securities, statistical finance and trading and market micro-market structures.
This session dives into the exciting world of quantitative finance, exploring the intersection of mathematics, statistics, and computer science with the financial markets. We'll delve into five key areas:
Computational Finance: Discover how powerful algorithms and computing techniques are used to solve complex financial problems, such as pricing derivatives or managing risk.
Financial Derivatives: Learn about contracts whose value is derived from underlying assets like stocks, bonds, or currencies. We'll explore how derivatives are used for hedging, speculation, and portfolio diversification.
Pricing of Securities: Demystify the process of determining the fair value of financial instruments, considering factors like risk, expected returns, and market conditions.
Statistical Finance: Uncover how statistical methods are employed to analyze market trends, assess risk, and build quantitative investment models.
Trading and Market Microstructures: Explore the inner workings of financial markets, focusing on order types, market liquidity, and the factors influencing short-term price movements.
By attending this session, you'll gain a foundational understanding of:
Quantitative Tools in Finance: The growing role of mathematics, statistics, and computing in modern financial analysis.
Financial Instruments and Markets: A broader perspective on derivatives, security valuation, and market mechanics.
Data-Driven Decisions: The importance of using data analysis to make informed investment decisions. -
24
Computational fiance, financial derivatives, pricing of securities, statistical finance and trading and market micro-market structures.
Get ready to explore the cutting edge of finance! This session dives into the world of quantitative finance, where math, statistics, and computing meet financial markets. -
25
Worksheet discussion
This session delves into the quantitative foundations of financial risk management, a crucial area for ensuring financial stability. -
26
Case studies: 6 part tool for ranking and assessing risks, portfolio diversification enigma.
This session puts theory into practice through two captivating case studies:
Case 1: Unveiling Hidden Risks with CARVER
A manufacturing company is considering expanding its product line with a complex new design. We'll utilize the CARVER risk assessment framework (Consideration of C-RITICALITY, A-CCESSIBILITY, R-ECOVERABILITY, V-ULNERABILITY, E-XPLOITABILITY, R-ADIATIO N) to:
Identify potential risks associated with the new product launch.
Assign scores to each risk factor based on its severity and likelihood.
Prioritize risks based on their overall CARVER score.
By applying CARVER, we'll demonstrate how a seemingly low-risk project can harbor hidden vulnerabilities, and how this tool can help make informed investment decisions.
Case 2: Diversification Dilemma - The Enigma of Portfolio Optimization
An investor is struggling to balance risk and return while building a diversified portfolio. We'll explore the challenges of portfolio diversification and examine:
Modern Portfolio Theory (MPT): Understanding the concept of efficient frontier and the trade-off between risk and return.
Correlation Analysis: Assessing how different asset classes move in relation to each other.
The Benefits and Limitations of Diversification: We'll explore how diversification can mitigate risk, but also potentially limit overall returns.
Through this case, you'll learn how to navigate the complexities of portfolio diversification and identify optimal asset allocation strategies.
Analytics for Financial Risk Management using R
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27
Financial risk management using R
This session dives into the powerful world of R programming and its applications in financial risk management. We'll explore how R can be used to analyze data, build models, and make informed decisions related to financial risk. -
28
Financial risk management using R
This session dives into the powerful world of R programming and its applications in financial risk management. We'll explore how R can be used to analyze data, build models, and make informed decisions related to financial risk. -
29
Financial risk management using R
This session dives into the powerful world of R programming and its applications in financial risk management. We'll explore how R can be used to analyze data, build models, and make informed decisions related to financial risk. -
30
Financial risk management using R
This session dives into the powerful world of R programming and its applications in financial risk management. We'll explore how R can be used to analyze data, build models, and make informed decisions related to financial risk.
Credit Risk Management
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31
Creditworthiness assessment, Risk quantification, Credit decision, Price calculation, Monitoring after payout.
This session explores the entire credit lifecycle, delving into the key steps involved in lending decisions:
1. Creditworthiness Assessment:
2. Risk Quantification:
3. Credit Decision:
4. Price Calculation:
5. Monitoring After Payout: -
32
Price calculation, Monitoring after payout.
This session focuses on the final two crucial stages of the credit lifecycle:
1. Price Calculation (Loan Pricing):
2. Monitoring After Payout: -
33
Price calculation, Monitoring after payout.
This session focuses on the final two crucial stages of the credit lifecycle:
1. Price Calculation (Loan Pricing):
2. Monitoring After Payout:
Market Risk & Financial Risk Management in Practice
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34
Conceptual and fundamental discussion on the concepts of Market and financial risk management.
This session dives into the fundamental concepts of market risk and financial risk management. We'll explore how these two areas impact individuals and organizations within the financial landscape. -
35
Live cases and hands on learning about Indian companies like Grasim, Bata, Reliance Industries.
Gear up for an interactive session where you'll dissect real-world financial data of prominent Indian companies like Grasim, Bata, and Reliance Industries! This session blends theory with practical application, equipping you with the skills to analyze companies and make informed investment decisions.
Liquidity Risk Management
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36
Working capital a management, operating cycle, inventory management,
This session dives into the crucial aspects of managing a company's lifeblood – its working capital. We'll explore how to optimize the flow of resources to ensure smooth operations and financial health. -
37
Receivables and Cash Management
This session delves into the two critical components of a healthy financial bloodstream – receivables and cash management. We'll explore strategies to ensure a smooth flow of incoming cash and optimize your company's financial performance. -
38
Payables management. Liquidity analysis in details with live cases of SAIL, TISCO and JSW.
This session tackles two crucial aspects of financial health: payables management and liquidity analysis. We'll delve into practical strategies and analyze real-world cases of prominent Indian steel companies – SAIL, Tata Steel (TISCO), and JSW Steel.
Financial Engineering and Hedging Strategies
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39
Hedging and hedging strategies
This session dives into the world of hedging, a risk management strategy used in financial markets to protect your investments from adverse price movements. -
40
Financial Technology, Machine Learning for Financial Engineering
This session explores the dynamic intersection of technology and finance, revolutionizing the industry and creating exciting opportunities. -
41
Hedging and hedging strategies Case Studies: Hedging currency risk at TT textiles
This session delves into the world of hedging, a risk management strategy used to protect your investments or business from adverse price movements. We'll explore a real-life example – the case study of TT Textiles – to illustrate how hedging can be applied in practice.
Forensics, Governance & Financial Crime
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42
Introductory Forensic Accounting & Financial Crimes
This session delves into the fascinating world of forensic accounting and its role in uncovering financial crimes. -
43
Fraud and Failure (focus on BFSI segment)
This session delves into the critical issue of fraud and failure within the Banking, Financial Services, and Insurance (BFSI) sector. We'll explore the different types of fraud, causes of failure, and strategies to mitigate these risks. -
44
Investigative Processes
This session delves into the intricate world of investigations into financial crimes. We'll explore how forensics and strong governance practices play a crucial role in uncovering misconduct and ensuring accountability. -
45
Advance Investigative Techniques, Report Writing Skills
This session elevates your investigative skillset, focusing on cutting-edge techniques and crafting impactful reports. -
46
Litigation Framework, Case Study
This session demystifies the complex world of litigation frameworks by exploring the key stages and procedures involved in legal disputes. We'll delve into a compelling case study to illustrate how these frameworks operate in practice.
Forensic Accounting and Financial Crime
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47
Introductory Forensic Accounting
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48
Introductory Financial Crimes
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49
Fraud, Failure, and Investigative Processes - Part 1
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50
Fraud, Failure, and Investigative Processes - Part 2
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51
Advance Investigative Techniques - Part 1
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52
Advance Investigative Techniques - Part 2
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53
Report Writing & Litigation Framework
