Financial Risk Management

Academic year: 2007-2008 Course code module FTEMAJ0022 Semester: 2nd semester Credits: 6 Study load (hours) 168 Theory (hours): 45,00 Practice/Exercises(hours): Other (hours): Part-time program: Instructor(s) Anouk Claes Language of instruction: English Semester exam information: semester exam in June Contract restriction information: 1. Prerequisites *Algemene competenties Non, but notions of financial economics will come in handy. *Sequentiality 2. Objectives (expected learning outcomes) You will be able to recognize and assess financial risks. Using the studied techniques, you will be able to measure and control these risks. 3. Course content This cours first builds a taxonomy of the existing financial risks. We will mainly study market risks (interest rate risk, commodity risk and equity risk) and credit risk. Operational risk and liquidity risk will only be discussed briefly. We focus on measuring exposures to financial risks, and study the instruments controlling these risks. An overview of the existing derivatives (options, futures, swaps, ...) will therefore be needed. Examples are discussed both in the field of corporate finance (e.g.  Metalgesellschaft) as in banking (e.g. Barings). 4. Teaching method Direct contact: Lectures Exercise sessions Personal work: Assignments - in group 5. Assessment method Exam: Written, without oral presentation Closed book Continuous assessment: Assignments 6. Compulsory reading – study material Reader provided by the lecturer. 7. Recommended reading - study material John C. Hull, Fundamentals of Futures and Options Markets, 5th Edition, Prentice Hall. 8. Tutoring laatste aanpassing: last update: 18/02/2008 16:49 anouk.claes