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

Class dates

Date	Time
Tuesday, 11.06.2019	09:00 - 17:00

Learning outcomes

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

Literature

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.

Total workload

10-20

FTMBA 2019_II WORKSHOP Risk Management