This module explores and describes the major risks faced by Financial Institutions. Risk management is at the heart of many critical Financial Institutions' decisions, and the effective management of risks is central to a Financial Institution's performance. It can be argued that the main business of Financial Institutions is to manage the risk of credit, liquidity, interest rate, foreign exchange, operations, and insolvency, among others. As a result, managers at financial institutions must dedicate a significant amount of time to understanding and managing the various risks to which their Financial Institutions are exposed.
During the module, students will go through the steps of computing Value-at-Risk, will learn about volatility modelling, back-testing, and historical simulation techniques, will make use of derivatives to hedge risk and will develop hedging strategies in excel. By the end of the module, students will understand the variety and complexity of the risks that managers of modern Financial Institutions face.
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:
For information see § 17.
|Name of exam
|Risk Management in Financial Institutions
|Type of exam
Written examIndividual examination.
|Type of grading
|Criteria of assessment
|The criteria of assessment are stated in the Examination Policies and Procedures
|Risikostyring i finansielle institutioner
|Language of instruction
|Location of the lecture
|Responsible for the module
|Study Board of Economics and Business Administration
|Aalborg University Business School
|Faculty of Social Sciences and Humanities