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CAP 600 · Unit 4 of 6

Financial model and risk analysis

Program Capstone Studio

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Learning objectives

After completing this unit, you will be able to:

  • to business decisions
  • Apply the frameworks in "Financial model and risk analysis" to a real management decision
  • Make progress on your Program Capstone Studio executive memo applied project

Why this matters

Financial model and risk analysis is essential to Program Capstone Studio. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 4 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Program Capstone Studio executive memo. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Financial model and risk analysis"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Program Capstone Studio executive memo?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • to business decisions
  • Business concepts only matter when they change a decision.
  • Your CAP 600 assessment (Integrated recommendation, operating plan, financial model, risk analysis, and executive presentation.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

40% applied project35% knowledge checks25% reflections

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Financial model and risk analysis45 min
Complete a focused practice exercise on **Financial model and risk analysis**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under CAP 600.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Financial model and risk analysis30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your CAP 600 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Model / spreadsheet

Build or extend a spreadsheet model tied to this unit.

ModelStructured model: Financial model and risk analysis60 min
Create a structured analytical model for **Financial model and risk analysis**. Document your assumptions, calculations, and conclusions in a format appropriate to CAP 600 (diagram, table, or written model). Connect outputs to a decision a manager would make.

Deliverable

Structured model document (2+ pages) · One-paragraph summary of key insight from the model · Screenshot or export saved to portfolio

Rubric

  • • Assumptions stated explicitly
  • • Logic is auditable (formulas or steps visible)
  • • Output answers a specific business question
  • • Sensitivity or scenario considered

Knowledge quiz

Check your understanding before marking the unit complete.

1. Marcus shows runway extending to 16 months in base case but covenant breach in month 11 in downside. What should the capstone recommend?

2. Three-statement capstone models must:

3. Sensitivity on win rate is important because:

4. HHC gross margin 68% in a revenue bridge means:

5. A risk register entry should include:

6. Downside scenario with covenant breach at month 11 implies:

7. FIN 201 DCF inputs in capstone work should:

8. Check line purpose in capstone finance tables is:

Next unit: Implementation roadmap →