Financial Systems

Course Number: SUST6240
Faculty: Constantin Gurdgiev, PhD

What students learn in this course:

  • How to assess vehicles and channels for raising capital from investors or donors for mission alignment
  • How to analyze investments and evaluate a portfolio across multiple asset classes on traditional financial criteria and on sustainability, ESG (environmental, social, governance), and impact metrics
  • The core elements of Modern Portfolio Theory, the Efficient Market Hypothesis, and the Efficient Frontier framework, and critically evaluate these approaches to the analysis of capital market dynamics and the pricing of financial assets, with a focus on achieving sustainability, ESG, and impact goals in capital markets.
  • Identify the strengths and weaknesses of how capital markets currently operate, and how the 5 Ps (policy, process, products, portfolios, platforms) can be used to create a more regenerative economy that balances people, planet, and profit.

About this course:

This course look at the systems and fundamentals of managerial finance, capital markets, and how both investors and investees organize for strong, resilient enterprises and portfolios. Financial fundamentals include cash flows, accounting ratios, liquidity, rates of return relative to risk, and net present value – and how all of them are linked to value creation and risk reduction by investments in human, social and environmental capitals. Investing fundamentals include investment policy, investment process, efficient frontiers, asset classes, and how to construct portfolios to realize impact and profit potential. With Financial Systems, students can build skills and competency to more effectively manage capital internally at an organization, and externally as an investment manager.