FTMBA 2019_II WORKSHOP Risk Management

All economics decisions are risky; therefore, managers need to estimate the different possible future outcomes of their decisions. This course introduces the concept of risk and the techniques of corporate and financial risk management. A key to these techniques is the understanding of probability distributions, which can be created through simulations. In addition, risk management is linked to the strategic management of a firm.

1) CAPM and Value Added of Risk Management

2) Corporate Risk Management

3) Case Strategic and Risk Management

4) Credit Rating (Counterparty Risk)

• Identification and definition of ‘risk’ in different contexts
• Realizing that risk perception is subjective and causes variance in decision making
• Quantification of ‘risk’ with various risk measures
• Identifying risks in business strategies
• Understanding the functionality of options, futures, and swaps

All economics decisions are risky; therefore, managers need to estimate the different possible future outcomes of their decisions. This course introduces the concept of risk and the techniques of corporate and financial risk management. A key to these techniques is the understanding of probability distributions, which can be created through simulations. In addition, risk management is linked to the strategic management of a firm.

• Identification and definition of ‘risk’ in different contexts
• Realizing that risk perception is subjective and causes variance in decision making
• Quantification of ‘risk’ with various risk measures
• Identifying risks in business strategies
• Understanding the functionality of options, futures, and swaps

Hull, J. (2015): Risk Management and Financial Institutions, chapters 1, 5, 7, 8Additional: Culp, C. (2001): The Risk Management Process, Wiley, chapter 4.Konstantinides (1998): Clarity from competence, Risk 1998, 49.

10-20