Content, progress and pedagogy of the module

The objective of the module is to provide the student with theoretical and practical knowledge and abilities within financial control, trade and management of commodities as well as physical and financial exposures within the commodity market and, additionally, to relate to the ethics within the area.

The student must develop abilities and skills to understand the market mechanisms in the commodity markets and handle the purchase and sale of commodities, theoretically and practically (simulated). The module is intended to provide the student with the strategic, financial and trading tools needed to handle both day-to-day management and risk management of commodities in practice.

Learning objectives

Knowledge

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

• the extent to which markets are regulated politically and of trends in connection with the transformation of the global commodity markets.
• the basic options for managing risk in the commodity market.
• the economic and practical fundamentals that drive commodity economics on the market. Furthermore, be aware of the ethical challenges within commodity economics.

Skills

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

• generating a theoretical and empirically informed decision basis on the background of various business models that analyse the value chain (from up- to downstream) in the commodity complex in order that financial and risk management of raw materials purchase/sale may be handled professionally.
• identifying and describing (theoretically) a specific issue related to exposures (physical and/or financial) within commodity economics and explaining the basic financial risks (and opportunities for risk management) related to the company's actual exposure (consumption and/or production or possibly speculative perspectives in connection with risk taking) versus commodities.
• analysing the problem area through theories of risk management and/or trading strategy/management (risk taking) and identify and describing the issue in the perspective of current business models as well as the opportunities for development of new business models based on financial management and risk/reward opportunities in the physical/financial markets.

Competences

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

• identifying and verifying an example of commodity exposure.
• explaining an example of an exposure or a problem/an opportunity in the commodity market.

Type of instruction

For information see § 17.

Exam

Exams