Understand the psychology behind the financial decisions you and others are making
This program is eligible for 18 CE credit hours as granted by CFA Society VBA Netherlands
The 3-day Behavioral Finance course has been designed for companies, as well as for the corporate advisors and financial intermediaries dealing with them. The purpose is to use the recent developments of behavioral finance to provide a source of competitive advantage to managers operating in an ever more complex world. The training will be particularly useful for managers, family business owners, board members, directors and executives who want to shift gear in the growth development of their company by a) understanding the new complex strategic and financial landscape, b) identifying strategies, and c) quantifying them.
The course will blend the psychology of human behavior with finance and strategies. It aims to give an overall eye-opening view that helps participants understand the new changing scenario, and to provide a structural framework for analyzing how human, social, cognitive and emotional factors impact financial and strategic decisions and the way they are quantified.
First, behavioral biases and their impact on financial behavior, decision making, and performance will be examined. The goal is to make participants aware of the different biases and to quantify their relevance in the decision making process. Then an operating framework will be developed to help participants think critically and to lay out how to move forward and cope with these new challenges, turning them into opportunities and sources of competitive advantage.
We will provide insights on how to create value and focus on the different steps of the value creation process. We look at the behavioral “mistakes” that prevent firms from growing and coping with obsolescence, thus making it difficult to manage disruption. The final objective is to provide participants with a framework that allows: 1) the screening of the corporate financial policies and growth plans typically proposed by managers (based on shareholder goals and values); and 2) the reassessment of the overall organizational structure of a firm (holding, joint venture, alliance, etc.) from a global strategic view, with the goal of achieving a more optimal integration of the financial and organizational structures.
How you will benefit
Gain an understanding of the major behavioral biases and see their impact on strategic planning as well as financial behavior, decision making and performance
Analyze how psychological phenomena impact the changing competitive landscape and markets
Understand how managers, corporate and private customers, as well as institutions think
Reduce your own vulnerabilities to making suboptimal judgments and inferior financial decisions
Learn how to apply behavioral tools to planning, strategic planning, investment and financial decisions
Learn about potential pitfalls of traditional valuation frameworks and how to properly account for the “hidden components” of financial and planning decisions
Develop a framework that leads managerial decisions both at the individual and team level, resulting in a high performance team
- Major behavioral biases and their impact on financial behavior, decision making and performance
- Awareness of the different biases and how to quantify their relevance in the decision process
- Foundations to understanding how bank managers, corporate and private customers as well as institutions think
Behavioral Corporate and Strategic Decision Making
- Value creation and sources of value destruction within companies
- How biases can lead to suboptimal planning and short-sighed strategic decisions
- What is the link managing obsolescence risk, dealing with disruption and managing for value
- An operational toolkit that improves the managerial/firm decision process
- How to address the client’s behavioral biases in a way that maximizes customer satisfaction and use these biases as a source of competitive advantage
Financial Valuation and Biases
- Complexities and potential pitfalls of traditional fundamentals-based valuation frameworks
- How to properly quantify value and design scenarios in the presence of biases by the firm and the market
- Applications to M&As, IPOs, SEOs, share buybacks, dividends
- Using new sources of information
High Performance Teamwork
- Behavioral factors conducive to high performance teamwork within a relationship manager team
- Framework for High Performing Teams
Who should attend
This program will benefit all professionals interested in learning how behavioral finance helps to explain the new financial and competitive scenarios in which companies operate, and how it impacts their decision making.
The course is aimed at managers, board members, family business owners, as well as all professionals who interact with them (e.g., asset managers, private and investment bankers, recovery and restructuring managers, bankers and managers in general, and financial planners).
Massimo Massa is the Rothschild Chaired Professor of Banking and a Professor of Finance at INSEAD. He has an MBA from the Yale School of Management and an MA and a PhD in Financial Economics from Yale University. He is a CPA and an Auditor and has previously worked in the Bank of Italy.
Professor Massa’s research interests include asset management, corporate finance, behavioral finance, and financial intermediation.
Dates & fees
3 - 5 June 2019
Program fee includes all study materials, books and software that are required for the program as well as daily luncheons.>
Program fee is exempt from VAT for clients located in the Netherlands. For other EU and Non-EU clients, VAT may be due by client and will not be charged by AIF. Fees may be subject to change.