Pietro veronesi is a professor at the graduate School of Business of the university of Chicago, where he teaches courses in financial risk management and Derivative Securities. he has a PhD in economics from harvard university, a master in econometrics from London School of economics, and Laurea Degree in economics from Bocconi university. Professor veronesi's research focuses on equilibrium model of market volatility and asset pricing under Bayesian uncertainty, with applications to stocks, bonds and derivative securities. his research is published in top academic journals, such as the Journal of finance, Journal of financial economics and review of financial Studies. Professor veronesi's research articles on stock price over-reactions to news and firm valuation under uncertainty about long term profitability also won prestigious prizes, such as the Barclays Global Investor/Michael Brennan prize for the best article on Review of Financial Studies, and the Smith Breeden prize for the best article on the Journal of finance. Professor veronesi is also affiliated with the National Bureau of Economic Research and the Center for economic Policy research.

Session 1: introduction: Derivatives and financial innovation
• the development of derivative markets
• the empirical evidence: Who uses derivatives?
• Why derivatives?
• risk management
• Speculation
• Strategic financial risk management (Sfrm)
• Financial innovation to cope with financing needs
• financial innovation to cope with market frictions

Session 2: Application of Sfrm
• financial innovation to cope with risk aversion
• Case Analysis: the Privatisation of rhone Poulenc

Session 3: Application of Sfrm
• financial innovation to cope with differences in opinion
• Case Analysis: mW Petroleum Proposal (B)
• Conclusion: the risks in Sfrm
• Why do corporate executives need to understand Sfrm ?
• examples:
• Sfrm to promote business expansion: metallgesellshaft
• SFRM to solve financing problems: Cephalon