Module 3 — Financial Risk Management, MBA

The third module of the Financial Markets & Risk Management specialization sheds light on essential risk sources in Finance: price risk, interest rate risk, and credit risk. During the course, students wil learn how to measure and hedge these risks.

Based on the second module (Asset Management), where students have become acquainted with basic financial instruments like stocks, bonds, and portfolios, we dvelve into the risks held by these instruments. Therefore it is necessary to learn about derivatives like options, futures, and swaps; and about risk measures like value-at-risk, duration, and many more. On our way through the Corporate Management MBA Finance stream, we will meet here the third winner of a Nobel Prize in Economics.

Prerequisites for the course include fundamental mathematical and statistical skills from Module 1 (Data Analysis & Statistics) as well as Excel® basics. A detailed table of content is available in the first lecture or upon request.

The course comprises 40 contact hours. The didactical approach relies on impulse lectures, exercises, case studies, Excel® application, and self-learning with the recommended references.

Textbooks:

  • Hull, John C. (2015): Risk Management and Financial Institutions, Wiley, 4th Edition.
  • Jarrow, Robert A. & Chatterjea, Arkadev (2013): An Introduction to Derivative Securities, Financial Markets, and Risk Management, W.W. Norton & Co.