Risk Management

2020/2021

Content, progress and pedagogy of the module

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.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

  • the main features of risk control techniques.
  • being able to give examples of risks that have emerged in recent years.
  • the fundamentals in hedging techniques.

Skills

The objective is that the student after the module possesses the necessary skills in:

  • distinguishing the main features of risk control techniques.
  • giving examples of risks that have emerged in recent years.
  • demonstratíng an understanding of the fundamentals in hedging techniques.

Competences

The objective is that the student after the module possesses the necessary competences in:

  • applying the concepts of corporate risk management.
  • analysing real life case studies and identify key risk management lessons.
  • selecting and using appropriate tool(s) to analyse a financial risk problem and offer an integrated solution.

Type of instruction

The module topics will be delivered online.

Exam

Exams

Name of examRisk Management
Type of exam
Written exam
Individual examination.
ECTS5
Assessment7-point grading scale
Type of gradingInternal examination
Criteria of assessmentThe criteria of assessment are stated in the Examination Policies and Procedures

Facts about the module

Danish titleFinansiel risikostyring
Module codeKAFIN202010
Module typeCourse
Duration1 semester
SemesterAutumn
ECTS5
Language of instructionEnglish
Location of the lectureCampus Aalborg
Responsible for the module

Organisation

Study BoardStudy Board of Business Economics
DepartmentDepartment of Business and Management
FacultyThe Faculty of Social Sciences