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.