FINANCIAL RISK MANAGEMENT

Assessement method:

Exam: 60 Min. (6 CP)




Recommended prior Knowledge:

Sustainable Finance





Examination Requirement:

• Demonstrate a profound knowledge of how risk management is related to other issues in corporate finance,


• document an understanding of viable reasons for corporate risk management and how corporate risk management can create value,


• demonstrate the ability to analyze and apply different risk measures,


• show a profound understanding of methods and techniques used to measure and manage international risks, interest rate risk, credit risk, and climate risk.

Qualification objectives/skills:

After a successful completion of the course students are able to:

• understand and explain how risk management is related to other issues in corporate finance,


• critically assess different motivations for corporate risk management,


• understand and critically assess different risk measures and how they are applied in practice,


• understand and explain how international risks can be managed and how the management of international risks is related to various economic parity conditions,


• understand, analyze and critically apply measures and methods to manage interest rate risk,


• understand, analyze and critically apply measures and methods to manage credit risk,


• understand, analyze and critically apply measures and risk management strategies for climate risk.

Lecture content:

1. Introduction
2. Risk Management: Motivation and Strategies

3. Managing Interest Rate Risk

4. Managing Credit Risk

5. Managing International Risks

6. Managing Climate Risk