As a growing company, we are interested in understanding the state of the market we are in, and our organization’s level of risk. In this project, students will assess our company’s risk by building a financial risk model to determine our best course of action. Students will perform a sensitivity analysis to help us eliminate some of the uncertainties we face and determine the reliability of risk estimates.

This may involve:

• Using mathematical and statistical tools to analyze private and public data.
• Evaluating metrics associated with the risk level of our company such as volatility, correlations for returns, forward/futures contracts, cash flows, variance, and economic states.
• Building a financial risk model including sensitivity analysis to determine the reliability of the model’s findings.
• Creating a report to present the results and recommendations from various forms of analysis to be presented to the project manager.

By the end of the project, students should complete the following list of activities (this is basically a retelling of the steps above):

• Use mathematical and statistical tools to analyze data sets.
• Evaluate metrics associated with the risk level of our company.
• Build a financial risk model with sensitivity analysis.
• Creating a report with the analysis results and recommendations.

Final deliverables should include

• A report including all results and recommendations from the data analysis.
• A 30-minute presentation.

Students will connect directly with us for mentorship throughout the project. We will be able to provide answers to questions such as:

• Are there any extra or industry-specific metrics that should be a focus during analysis?
• What types of securities do we hold?
• Input on choices, problems or anything else the students might encounter.

In order to complete this project, students can self-teach, but it is beneficial to be familiar with:

• Financial modeling using Excel.
• Data analysis.
• Risk, audit and compliance.
• Critical thinking.

Nice to haves for students include

• Experience with advanced data modeling softwares.

Again, students can complete this project without any of the prior knowledge listed here. Students will be expected to research and learn more about this above as the project goes along.

We can provide students with:

• Internal financial materials and statements.