Financial Risk Management & Financial Modeling using MS Excel
Introduction: Financial Risk Management is a crucial discipline that helps organizations identify, analyze, and mitigate potential risks that could negatively impact financial performance. It involves assessing various types of risks — such as market risk, credit risk, liquidity risk, and operational risk — and designing strategies to manage them effectively.
Role of Financial Modeling: Financial modeling serves as a quantitative tool in risk management by simulating different financial scenarios and evaluating their potential impact on a company’s value or performance. Models help predict financial outcomes under varying conditions, such as changes in interest rates, exchange rates, or market demand. Through these models, decision-makers can forecast revenues, assess investment risks, and plan for contingencies.
Using MS Excel for Financial Modeling: MS Excel is one of the most widely used tools for building financial models due to its flexibility, computational power, and availability. Excel allows users to create dynamic models using formulas, data tables, and scenario analysis tools. Functions such as NPV (Net Present Value), IRR (Internal Rate of Return), and sensitivity analysis help evaluate financial risks and returns. Advanced features like Solver, Monte Carlo simulation (using add-ins), and Pivot Tables enhance analytical capabilities for better decision-making.
Applications in Risk Management:
- Market Risk Analysis: Evaluating the effect of price or rate fluctuations.
- Credit Risk Assessment: Modeling borrower default probabilities.
- Portfolio Management: Measuring risk-return ratios and portfolio diversification benefits.
- Scenario & Sensitivity Analysis: Testing how changes in key assumptions affect outcomes.
AIM of the Event:
- The aim of this module is to enable students to understand, assess, and manage financial risks through data-driven decision-making and analytical tools. Using MS Excel as a primary platform, the course focuses on developing practical skills to build financial models, conduct risk analysis, and simulate various financial scenarios for informed strategic planning.
- It helps learners gain proficiency in applying quantitative techniques to evaluate investment risks, forecast financial performance, and support sound financial decision-making in real-world business contexts.
Guest/Speakers of the Event (If any):
| Name | Designation | Affiliation |
|---|---|---|
| Mr. Arvind Datta | Founder & CEO of Marigold Wealth | N/A |
| Participating School | |
|---|---|
| School/Department Name | Year/Department |
| School of Management & Commerce | (1st Year, 2nd Year, 3rd Year) |
Is this Event Under IIC?
- No, It's not under IIC
Is the event in collaboration with another school/Department?
- No
Department:
- IXP
Date, Time & Venue of the Event:
- 14-Oct-2025 to 14-Oct-2025
- 10:00 am - 12:00 pm
- Seminar Hall - SOMC
Event Coordinator
- Harshita Sachan ( 9116300757)
Contact Person:
- Harshita Sachan (9116300757)