FM_RL_1.1.1.1

Summary

In this introductory lecture on financial management, Krishna Madhavan introduces the course structure, including the flipped classroom format and course objectives. He provides insights into his background, which includes certifications like CFA and FRM, and his experience in finance, banking, and risk management. Madhavan emphasizes the importance of understanding finance's role in various corporate functions and introduces the concept of shareholder wealth maximization as a core principle. The session also covers the Indian financial system and provides resources for students to engage with the course content effectively.

Takeaways

• 😀 The course is an introduction to financial management, aimed at giving students a solid foundation in finance.
• 😀 Krishna Madhavan, a CFA and FRM charterholder, is the lead instructor with extensive experience in finance and management.
• 😀 The flipped classroom model will be used for the course, meaning students will engage with content outside of class time and apply it during class.
• 😀 The course objectives include providing an understanding of financial management, its principles, and its relation to other business functions.
• 😀 Key principles such as shareholder wealth maximization are central to the course and form the foundation of the topics discussed.
• 😀 The course will explore the interface of finance with various departments, offering a cross-functional perspective on financial management.
• 😀 Practical tools, including online resources and real-world financial websites, will be shared to enhance students' learning and application of the material.
• 😀 Krishna’s career includes work in consulting for banks, financial institutions, and corporate clients, with a focus on credit risk and finance operations.
• 😀 Students are encouraged to explore finance roles within their organizations, using the course as a stepping stone to interact more closely with finance functions.
• 😀 Krishna’s email is shared for students to reach out for any queries, guidance, or career discussions related to finance and financial management.
• 😀 Krishna’s background includes roles at Capital One, where he managed risk operations in Asia-Pacific, and Tata Unisys, offering a diverse blend of industry and academic expertise.

Q & A

What is the main objective of the course on financial management?

The main objective of the course is to introduce the foundational principles of financial management, explore how finance interfaces with other functions within a corporate entity, and provide a thorough understanding of key financial management concepts like shareholder wealth maximization.

What is shareholder wealth maximization, and why is it important in finance?

Shareholder wealth maximization is a fundamental principle in finance, which focuses on increasing the value of a company for its shareholders. This concept is critical as it drives many of the decisions and strategies within financial management, ensuring the long-term growth and profitability of the company.

How does the flipped classroom model work in this course?

The flipped classroom model allows students to engage with the course material independently before the class. This approach encourages active learning, where students interact with the content outside the traditional lecture format, and use class time for discussions, problem-solving, and deeper understanding.

Can you briefly explain the role of Krishna Madhavan in this course?

Krishna Madhavan is the lead instructor for the course. He is a CFA charterholder and an FRM titleholder, with a background in engineering and finance. He brings extensive experience from working with various corporations, including Capital One, and has a strong focus on finance education.

What professional qualifications does Krishna Madhavan hold?

Krishna Madhavan holds the CFA (Chartered Financial Analyst) Charter, which he obtained in 2002, and the FRM (Financial Risk Management) title, which he received in 2008. These designations are awarded by recognized international bodies and are highly valued in the financial industry.

What was Krishna Madhavan's professional experience prior to joining BITS Pilani?

Before joining BITS Pilani, Krishna Madhavan worked as a consultant for leading corporations and banks across the world. He spent seven years helping candidates prepare for the CFA and FRM exams and worked for Capital One, where he managed risk operations in the Asia-Pacific region.

What is the Indian financial system, and how does it relate to this course?

The Indian financial system includes various institutions, markets, and regulations that manage the flow of funds within the economy. Understanding the Indian financial system is important for the course, as it helps students contextualize financial concepts and apply them in a local context.

What are the key areas of finance that will be covered in this course?

The course will cover an overview of financial management, the interface of finance with other corporate functions (like marketing, technical, and operational roles), and the application of core financial principles such as shareholder wealth maximization.

Why is it important for professionals in non-finance roles to learn about finance?

Understanding finance is crucial for professionals in non-finance roles because it allows them to make informed decisions, communicate effectively with finance teams, and understand how their work impacts the financial health of the organization.

What is the significance of Krishna Madhavan's career at Capital One?

At Capital One, Krishna Madhavan gained valuable experience in risk operations, particularly in credit strategy and credit risk management. His work at Capital One exposed him to both strategic and operational roles, providing him with a comprehensive understanding of how financial management functions in large corporations.