The module International Risk Management is part of the Logistics Management as well as the Maritime Management specialization. In both areas, students will face especially market risks in their practical experience. For example, the the prices of raw materials like oil or steel may very over time (price risk), the term structure changes (interest rate risk) or the exchange rate between currencies fluctuates (FX risk).
Therefore, we introduce important risk measures like volatility, beta, correlation, duration or Value-at-Risk and explore their properties. In a next step, appropriate hedging strategies are developed. Mostly, they rely either on the application of derivatives like futures, options or swaps; or on the benefit of diversification. All concepts are transformed and examined in Excel®.
The didactical approach therefore relies on impulse lectures, self learning with selected literature and application in Excel®. The module comprises 48 contact hours and is completed by case studies from practitioners.
- Eun, Cheol & Resnick, Bruce G. (2011): International Finance, McGraw-Hill.
- Hull, John C. (2012): Risk Management and Financial Institutions, Wiley.
- Jarrow, Robert A. & Chatterjea, Arkadev (2013): An Introduction to Derivative Securities, Financial Markets, and Risk Management, W.W. Norton & Co.