MBA Finance

Problem Statement

• Roles, responsibilities and process not clearly defined
  • Communication between analysts and business partners/PM not consistent
  • Stage of analyst involvement in upstream process e.g., scenario planning not defined
• Analysts using different criteria to justify use of certain valuation tools (e.g., use of traditional vs. new multi-indication model not standardized; also need to enhance valuation training material)

Project Goals/Objectives

• Clearly defined roles, responsibilities and process
• Defined criteria to justify use of valuation methods
• Centralized and integrated training materials

In Scope/Out of Scope

• Entire valuation process including early/late phase, single/multi-indications and all inputs

End Customers/Stakeholders

• LRL Finance Early/Late Phase Analysts and Mgmt
• Input providers including LMR, Mfg. Finance
• Therapeutic Area Business Partners & PM

Capabilities/Skills Intern will Develop

• Critical thinking, strategic assessment and understanding of valuation process
• Financial modeling of R&D pipeline assets
• Business communication and presentation skills

Expected Deliverables

• Defined process and documentation to be communicated with all stakeholders
• Training material/desktop instructions
• Updated InfoCenter

Prerequisite Skills/Capabilities Required Prior to Start of Internship

Problem Statement

• In light of recent bank failures and the general economic and credit crisis, an increasing number of banks and companies are adding CSAs to their Swap contracts to mitigate counterparty risk.  Lilly needs to analyze and assess the cost/benefits of such potential arrangements, and, if appropriate, determine the best operational approach for implementation.

Project Goals/Objectives

• Assess the trade-off between CSA operational costs of administration, as well as the opportunity cost of posting the collateral, against the degree and benefit of mitigated counterparty risk.
• Design an implementation approach for Lilly to use for its Swaps, if CSAs are determined to be a positive cost-benefit proposition

In Scope

• Interest Rate Derivatives

End Customers/Stakeholders

• Global Treasury
• Risk Management Committee (“RMC”)
• Corporate Financial Reporting

Capabilities/Skills Intern will Develop

• Knowledge of industry standard International Swaps and Derivatives Association (“ISDA”) documentation
• Knowledge of accounting for derivatives
• Knowledge of the Bond Market

Expected Deliverables

• Financial analysis of the cost-benefit of employing CSAs in interest rate derivative contracts
• Operational implementation plan

Problem Statement

• Country-specific RARRs are not calculated in a timely and accurate fashion
• We’ve had multiple instances of business partners questioning the relevance of certain country RARR
• Updating the list is somewhat labor-intensive

Project Goals/Objectives

• Create a user-friendly model to produce RARRs, regressing composite risk data against sovereign credit default swaps

In Scope/Out of Scope

• Current list includes 139 countries, but could potentially be pared down
• Currently published monthly, but want to consider the merits of quarterly updates

End Customers/Stakeholders

• Global Treasury
• International Finance
• Manufacturing

Capabilities/Skills Intern will Develop

• Sophisticated regression analysis
• Understanding of CDS market
• Presenting complex concepts in simple form

Expected Deliverables

• Reliable, repeatable RARR model, process, and output
• Complete, user-friendly User Documentation