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Training DVD

We offer both live seminars where participants can obtain the Certified in Risk Management (CRM) designation or, for individuals who wish to obtain the knowledge without the designation, a cheaper alternative: the Training DVDs. The information and knowledge contained in the Training DVDs are similar to what is covered in class, but to obtain the CRM designation, participants must attend the live seminars and take the CRM exam.

The Training DVD comprises 12 DVDs and cover the following main topical areas:

  • Monte Carlo Simulation with Risk Simulator
  • Forecasting with Risk Simulator
  • Optimization with Risk Simulator
  • Real Options Analysis with Real Options Super Lattice Solver
  • Analytical Tools

As part of the DVD Training set, you will receive 12 DVDs and a workbook with the slides and examples covered in the DVDs. The materials in the DVD follow the Certified in Risk Management curriculum and the two books (sold separately): “Modeling Risk: Applying Monte Carlo Simulation, Real Options Analysis, Forecasting, and Optimization, 2nd Edition,” by Dr. Johnathan Mun (Wiley Finance, 2010), and “Real Options Analysis: Tools and Techniques, 2nd Edition,” by Dr. Johnathan Mun (Wiley Finance 2005), and the relevant training models CD used in the lessons. Download the Training DVD brochure here.

The lessons are developed and taught by Dr. Johnathan Mun, the creator of both the Risk Simulator and Real Options Super Lattice software, professor of finance and economics, author of many books on risk and real options, and CEO of Real Options Analysis, Inc. This is particularly important in terms of consistency and expertise because you learn the course material from the same person who developed the software, wrote the books and consults for major corporations.

In each DVD, there is an introduction to the topics to be covered, as well as learning outcomes for each module. Each DVD is divided into various modules or chapters, as summarized below:

DVD 1: Introduction to Risk Analysis
Chapter 1: Introduction to the Training DVD
Chapter 2: How are business decisions made?
Chapter 3: What is risk and why should risk be considered?
Chapter 4: Overview of Risk Analysis software applications

DVD 2: Monte Carlo Simulation with Risk Simulator
Chapter 1: Overview of the Risk Simulator software
Chapter 2: Profiling, assumptions, forecasts and running simulations
Chapter 3: Interpreting the forecast statistics
Chapter 4: Simulation run preferences and seed values
Chapter 5: Running reports, saving and extracting simulation data

DVD 3: Advanced Simulation Techniques
Chapter 1: Correlating and truncating distributions
Chapter 2: Alternate parameters
Chapter 3: Multidimensional simulations
Chapter 4: Distributional fitting and choosing distributions
Chapter 5: Due diligence and pitfalls in simulation

DVD 4: Simulation and Analytical Tools
Chapter 1: Static tornado and spider charts
Chapter 2: Dynamic sensitivity analysis
Chapter 3: Hypothesis test on different distributions
Chapter 4: Nonparametric bootstrap simulation
Chapter 5: Precision control

DVD 5: Forecasting
Chapter 1: Overview of forecasting techniques and data types
Chapter 2: Forecasting without data
Chapter 3: Time-series analysis forecasting
Chapter 4: Nonlinear extrapolation
Chapter 5: Multivariate regression analysis
Chapter 6: Stochastic processes
Chapter 7: Box-Jenkins ARIMA

DVD 6 and 7: Real Options Analysis: Theory and Background
Chapter 1: Introduction to real options: what, where, who, when, how, and why
Chapter 2: Sample applied business cases
Chapter 3: Overview of different options valuation techniques: closed-form models, partial differential equations, and binomial lattices
Chapter 4: Risk-neutral probability technique
Chapter 5: Solving a basic European and American call option
Chapter 6: Using Excel to solve basic American options
Chapter 7: Solving basic abandonment, expansion, contraction, and mutually exclusive chooser options

DVD 8 and 9: Real Options Analysis: Application with SLS Software
Chapter 1: Overview of the different SLS modules
Chapter 2: Estimating Volatility (GARCH, Log PV Asset, Log
Cash Flow Returns, management assumptions)
Chapter 3: Solving options with changing inputs and customized exotic options
Chapter 4: MSLS: Multiple sequential compound options
Chapter 5: MNLS: Solving mean-reverting, jump-diffusion, and dual-asset rainbow options using trinomial, quadranomial, and pentanomial lattices
Chapter 6: Framing real options—structuring the problem
Chapter 7: The next steps…

DVD 10: Optimization with Risk Simulator
Chapter 1: Introduction to optimization problems
Chapter 2: Continuous optimization
Chapter 3: Integer optimization

DVD 11: Quick Getting Started with Risk Simulator
Covers a quick getting started guide on using Risk Simulator and Real Options SLS

DVD 12: Optimization with Risk Simulator
Models used in the training are provided on a separate CD/DVD

Dr. Johnathan Mun is the software’s creator and teaches the Risk Analysis, Real Options for Analysts, the Real Options for Managers, and other related courses. He has consulted for many Fortune 500 firms on risk analysis, valuation, and real options, and has written many books on the topic, including Real Options Analysis: Tools and Techniques, 2nd Edition (Wiley Finance, 2005); Real Options Analysis Course: Business Cases (Wiley Finance, 2003); Applied Risk Analysis: Moving Beyond Uncertainty in Business (Wiley, 2003); Valuing Employee Stock Options Under 2004 FAS 123 (Wiley, 2004); Modeling Risk: Applying Monte Carlo Simulation, Real Options Analysis, Forecasting and Optimization (Wiley, 2006); and others. He is the founder and CEO of Real Options Valuation, Inc., and is responsible for the development of analytical software products, consulting, and training services. He was formerly the Vice President of Analytics at Decisioneering, Inc., and was a Consulting Manager in KPMG’s Global Financial Strategies practice. Before KPMG, he was the head of financial forecasting for Viking, Inc. (an FDX/FedEx Company). Dr. Mun is also a full professor at the U.S. Naval Postgraduate School, a professor at the University of Applied Sciences and Swiss School of Management (Zurich and Frankfurt), and has held other adjunct professorships at various universities. He has a Ph.D. in finance and economics, an MBA in business administration, an MS in management science, and a BS in applied sciences. He is certified in Financial Risk Management (FRM), Certified in Financial Consulting (CFC), and Certified in Risk Management (CRM). He currently resides in California.

Risk Simulator

It is a powerful Excel add-in software used for applying simulation, forecasting, statistical analysis, decision trees, econometric analysis, and optimization in your existing Excel spreadsheet models. Risk Simulator was developed specifically to be extremely easy to use. For instance, running risk simulations is as simple as 1-2-3 (set an input, set an output, and run); and performing forecasting (i.e., Auto-econometrics, GARCH models, Stochastic Processes, Time-Series, Multivariate analysis, and so forth) relies on simple clicks in the software. Users are more focused on the analysis, reports, and numerical results.

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Real Options SLS

It is standalone software with Excel add-in for analyzing and valuing real options, financial options, exotic options and employee stock options. With Real Options SLS, all inputs could be incorporated into custom spreadsheet models, allowing creating your own “à la carte” fully customized models, where all the mathematical equations and functions are visible. Consequently, option valuations and results are easier to understand and explain, especially, allowing users valuing to financial and real assets, quantifying flexibility, and mitigating uncertainty.

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