This module explores the ways in which management of the overall risks of the firm can enhance firm value. Risk management is at the heart of many critical corporate decisions: day-to-day operations, resource allocation, strategic planning, capital structure, reputational and legal exposure, and performance measurement.
The module will focus on multinational firms, as compared to purely domestic ones have greater opportunities in terms of diversification, scale economies, and larger cost effective financing sources. On the other hand, they also face greater risks: political instability, exchange rate fluctuations, and complex fiscal regulations. Since, multinationality is an increasing feature of modern business, managers of firms (be they international or domestic) must have some of the knowledge and skills required by multinational business. The rapidly increasing integration of capital markets renders this even more imperative.
The module will introduce the student to the concepts, techniques and instruments of international financial management. Particular relevance will be given to the use of financial derivatives to hedge against foreign currency and interest rate risk. The student will use tools for modelling risk analysis (e.g. VaR, Expected Shortfall and Analytical VaR models), critical thinking and risk scenario planning, while applying the knowledge to current issues facing by corporations, through risk evaluations to give an enterprise view of risk.
The objective is that the student after the module possesses the necessary knowledge on:
The objective is that the student after the module possesses the necessary skills in:
The objective is that the student after the module possesses the necessary competences in:
The module topics will be delivered online.
|Name of exam||Risk Management|
|Type of exam|
Written examIndividual examination.
|Assessment||7-point grading scale|
|Type of grading||Internal examination|
|Criteria of assessment||The criteria of assessment are stated in the Examination Policies and Procedures|
|Danish title||Finansiel risikostyring|
|Language of instruction||English|
|Location of the lecture||Campus Aalborg|
|Responsible for the module|
|Study Board||Study Board of Business Economics|
|Department||Department of Business and Management|
|Faculty||The Faculty of Social Sciences|