This program prepares executives with a general understanding of accounting and financial principles as they relate to organizations' operations and decision-making processes. It also prepares financial analysts and investors with a general understanding of the valuation content and limitations of financial statement information. Starting with a review of financial data in a company's annual report and accounting statements, participants will gain a well-rounded understanding of how basic accounting information may be used in communicating with financial managers, as well as to assess a firm's future prospects and value. The remaining time will be spent covering finance principles relevant to leaders whose primary job responsibilities are outside of the finance function with implications for project decisions, corporate structure and performance measurement. This will involve examining how project choice maps to various financial metrics and highlighting common pitfalls in this process, such as recent psychological biases described in the field of Behavioral Finance.
The format of this three-day program includes a combination of: lecture on basic but important finance and accounting principles; interactive discussion of actual financial statements and policy decisions in a range of situations including the current financial environment; and group analysis of cases involving relevant, real world financial issues.
Program Benefits: During this program participants will
Analyzea firm's annual reports and statements to interpret the data for use in the organization and to assess a firm's future prospects and value
Learnhow to communicate more effectively with finance colleagues
Develop an understanding of the foundational elements of finance, including valuation metrics for project choice, and the driving forces behind corporate finance decisions and results - namely incentives, information, and psychology
Evaluate concerns related to the acquisition/investment decisions of the organization and their funding
Applythe principles of accounting and finance to shed light on various business events - ranging from the general aspects and implications of financial crises and trends to participant-specific issues such as performance measurement, compensation and project choice.
Program Dates: February 6 - 8, 2013, October 16 - 18, 2013 Program Tuition: $4,200
Contact Number: (212) 998 - 0789
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Global Finance and Strategy for Senior Executives
The challenges of leading a global organization have never been more complex and fast-changing. Specifically, decision making at a global enterprise requires a level of financial understanding and strategic thinking that go beyond what senior executives can learn on the job. NYU Stern School of Business and IESE Business School have created a senior-level, international program to develop the business acumen in finance and strategy that leaders of global organizations need to create sustainable success across borders.
Global Finance and Strategy for Senior Executives centers on modules held on three diverse global locations – in Barcelona (at IESE Business School); New York City (at NYU Stern School of Business) and Shanghai. This multi-modular format gives C-suite and senior executive participants an unparalleled global learning experience, as well as the opportunity to network with peers from around the globe. Essential areas covered during the program include strategy execution, globalization and financial markets and strategic leadership. Participants will gain insights on specific topics such as negotiation, reputational risk, governing modern corporations and credit risk, as well as M&A and cross-border transactions. Participants will also see globalization in action during an eye-opening, immersive experience in China.
Business today is increasingly complex and performed on a global stage. The financial performance of a country in another region of the world can affect strategic decisions for business done at home. Successful executives understand the interplay between financial and strategic decisions and how those decisions may have different outcomes in different parts of the world. The goal of this program is to equip you with the latest knowledge and skills in finance and strategy to make the best decisions for your organizations, while helping you build a trusted network of global peers.
Expand Knowledge This program is designed for high-level managers who seek to expand their knowledge of global financial markets and gain new tools and techniques for better decision making. You will have the chance to step back from daily responsibilities and broaden your understanding of global market dynamics.
ImmediateApplication You will develop practical skills and tools, which can be applied immediately to your organization. Through the application of new frameworks, you will learn new ways to measure and boost value for your organization. The program includes an Individual Business Project, which allows you to tackle a specific problem that is relevant to your company.
Global Perspective With modules on three continents, the program offers a highly international global learning experience led by the faculty of two leading business schools – IESE and NYU Stern. You will learn and network with other seasoned executives representing diverse nationalities and industries.
Leadership Focus The Global Finance and Strategy for Senior Executives program will sharpen your leadership skills and show you new ways to harness the potential of those around you in order to executive strategy more effectively.
Acquire new, sophisticated financial and strategic skills
Learn about new regulation developments in key markets
Gaininsights on the latest research in global finance
Analyze real-world financial scenarios in Europe, North America and Asia
Engage in new thinking and behaviors for leading more effectively
Develop advanced negotiation and communication skills
Create an action plan to take back to their organization
To apply to the program, please complete the application form available on line at www.iese.edu/globalfinance
The Admissions Committee, comprised of representatives from IESE and NYU Stern, will review all applications. An academic or program director will also interview candidates. Due to class restraints and the need for a balanced mixture of backgrounds, it is possible that even highly qualified applicants may not be admitted to the program. Early application is encouraged.
Program Dates: Module 1 – April 15-19, 2013; Module 2 – June 3-7, 2013; Module 3 – September 23-27, 2013 Program Tuition: $33,500
Contact Number: (212) 998–0789
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Behavioral Finance and Applications to Business Decisions
The goal of this program is to help participants understand how human behavioral biases affect financial and non-financial business decision-making. We will explore the typical assumptions of human rationality, the various ways humans violate these assumptions, and the applications of these psychological findings to business.
Traditionally, the field of Finance has made assumptions of human rationality in decision making in order to facilitate modeling.These assumptions include defining the traditional finance’s decision-maker as having three traits:
Reasoning which follows perfect, rational mathematical logic – without cognitive error;
Decision-making without emotional bias – instead done in a cool, calm and collected manner; and
Judgment based solely on pure self-interest – rather than with other objectives such as social welfare.
These assumptions of human rationality have led to the development of powerful theories that have gone on to revolutionize the practice of both investment and corporate finance. However, there are a number of anomalies that these models struggle to explain, many of which are consistent with humans behaving in irrational ways.
The field of Behavioral Finance has put forth explanations for these anomalies and others by relaxing the assumption of the perfectly rational human.By being aware of both their own and others human biases, participants can enable themselves to make better business and financial decisions.
Given the wide range of applicability of these psychological findings, this program is not limited to applications to investments and corporate finance and will also include other business implications. We will examine examples of the dozen most important behavioral finance findings – including some well-known issues such as overconfidence, anchoring, self-control and social capital. But we will also delve into subtler psychological aspects as well. These include but are not limited to some from the Nobel-prize winning work of Prospect Theory. In particular, we will discuss Loss Aversion (why we hold on to inferior securities, projects and employees for far too long); Probability Weighting (why we often overpay for both longshots and several types of insurance); and Relativism (how we can get people to switch from preferring asset A over asset B to preferring B over A by injecting a third option C – even though C is clearly inferior to the others). These common and other behavioral finance findings will be illustrated via lecture, discussion, interactive exercises, and group work.
Program Dates: October 21-22, 2013 Program Tuition: $2,800
Contact Number: (212) 998–0789
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Strategic Marketing and Finance: Finding the Common Ground
At times, it can seem that the marketing and finance teams are at odds when, in reality their goals are completely aligned. Or, at least they should be. Marketing's objective is to get and keep a customer profitably. Finance, the language of business, focuses on investing scarce resources with the expectation of earning profits. The disconnect that occurs between these two disciplines is often due to a lack of a common language, or a common ground.
The objective of this program is to provide marketers with the skills to develop sophisticated marketing strategies and the tools to obtain the resources to implement and evaluate them. For the finance professional, this program will provide an in-depth look into the discipline of marketing and the rationale behind marketing decisions and requests for resources. As a result of the program, participants from both disciplines will improve their communication with and understanding of the other. This will be an intensive and highly interactive program. Participants are expected to question, argue and discuss everything that is presented.
A major feature of this program is the use of a computer simulation developed by Professor Jeffrey Carr -The Global Marketing Game (GMG). In the simulation, teams will manage the marketing activities of a global manufacturer. Responsibilities include developing marketing strategies, analyzing market research, designing appropriate products, choosing distribution channels, pricing products and managing the product portfolio of their company. GMG is a dynamic, competitive, engaging and entertaining experience that focuses on the strategic marketing concepts of market segmentation, competitive advantage and company resource allocation
Program Benefits: During this program participants will
Build analytical skills for developing marketing strategies at the corporate, business unit and product level
Develop insights into linking marketing tools and concepts with finance tools and language and developing the common ground between two often opposing viewpoints
Improve skills in making effective arguments and business cases from a strategic, marketing and finance perspective
Increase returns on marketing investments through better allocation of marketing resources
Manage market and product portfolio risk better
Program Dates: June 17 - 20, 2013 Program Tuition: $5,600
In light of the recent financial crisis and the ongoing turbulence in Europe, risk management has gained increased attention and recognition as a strategic discipline. That said, risk management practices, as well as corporate governance practices, have also gained negative attention for their inability to avoid large losses for many institutions. There is a growing need for major improvements to the risk management discipline. The goals of this intensive, three-day program are to:
Explore the critical issues of a professional risk manager in a strategic and integrated way from the perspectives of both management and shareholders
Challenge professional risk managers to rethink and reframe their approach to the risk management discipline
Deliver a sensible balance between risk measurement and risk management by emphasizing content and applications of risk management, as opposed to being technical in nature
This program will address the following critical issues in risk management:
The role of professional risk managers in the managerial and strategic hierarchy:Risk control should be given co-equal importance as revenue generation at the senior levels of management and risk issues must be capably represented on boards. With the benefit of hindsight, it seems clear that this has often not been the case in the past, with risk managers being undercompensated and underrepresented at high levels of management – to the point that critical risk issues were suppressed.
Internal vs. external approaches:With talented and well compensated risk management staff - and a cohort of senior managers with various functional, business-line and geographic responsibilities who understand what integrated, firm-wide risk management is all about - a do-it-yourself approach to risk management on an open-architecture basis (as against relying on external risk management packages) has the great advantage that the firm “owns” the process and can adapt it to specific needs and changing circumstances, as well as incorporating nuances and common sense.
Resources:The risk function must be given adequate resources. As a cost (as opposed to revenue) function that succeeds when things don’t happen, success is hard to measure. As a result, risk management is particularly vulnerable to cost-reductions and head-count cuts under difficult business conditions leaving firms under-protected against losses when they most need it.
Accuracy of risk management data and risk reporting: Both data inadequacies and a lack of timeliness contributed to management and control failures in the recent past. The ability to store, process and report high quality, real time data on risk exposure has an important bearing on the reputation and franchise value of financial and nonfinancial businesses institutions in the future. Certainly, the ability to produce reliable risk-related reports to satisfy the regulators and the shareholders will be subject to much more intense scrutiny going forward.