AMS 601, Risk Management and Business Risk Control in BRIC Countries
Introduction to the challenges and opportunities in investing in the BRIC countries,
Brazil, Russia, India and China, with emphasis in the risk assessment, control and
management.�Opportunities in investing in BRIC:� growth in infrastructure, middle
class demand, educated cheap workforce, potential for outsourcing work, high risk/high
reward.� Risks facing investors in BRIC:� strategic, operational, political, market
risk, credit risks.� Cultural barriers:� family-owned businesses, lack of business
professionalism, poor transparency and disclosures of business practices, shallow
and volatile markets, unstable macro-economic policies, tardy legal system.� Responsibilities
of investors in the BRIC countries:� helping the BRIC governments and corporations
in smooth transition to global markets and to developed status, providing coordination
and transfer of business knowledge and technology from risk professionals in developed
countries to emerging markets.
Prerequisite: AMS 511
Course is cross-listed with MBA 584
Spring, 3 credits, ABCF grading
Textbooks:
1. "Quantitative Risk Management: Concepts, Techniques, and Tools" by Alexander J.
McNeil, Rudiger Frey, Paul Embrechts; Princeton University Press 2005; ISBN: 978-0691122557(required);
2. "Principles of Financial Economics" by Stephen F. LeRoy, Jan Werner, Stephen A.
Ross; Cambridge University Press, 9th printing 2010; ISBN: 978-0-521-58605-4(optional/recommended);
3. "Socially Responsible Investing: Making a Difference and Making Money" by Amy Domini;
Dearborn Trade 2001; ISBN: 978-0-7931-4173-7 (optional/recommended)