Modeling and Pricing Event Risk

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Training Event Transcripts
October 3, 2017
Gary Schurman, MBE, CFA
valuation method

Summary

Many private companies are exposed to event risks such as the loss of a major customer. A common practice to account for this risk is to leave expected cash flows unchanged but add a few hundred basis points to the discount rate. Join Gary Schurman to learn how to build a quantitative valuation model that accounts for event risk and is consistent with economic theory. Learn the difference between diffusion and jump-diffusion asset price models and how to model event risk via exponential arrival times. Take the time to better understand how event risk can be incorporated in your next valuation model.
Modeling and Pricing Event Risk
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