40-FS2025-0-Risk Management





Root number 40
Semester FS2025
Type of course Lecture
Allocation to subject Business Administration
Type of exam Written exam
Title Risk Management
Description Due to unforeseen medical circumstances, the course will take place online in the spring semester 2025. Recordings of the lectures will be made available in advance for a period of the semester up until the first exam date. The links to the recordings (posted in the Zoom-cloud) can be found on Ilias under the name “Lecture plan 2025”. We will meet via Zoom for the introduction and the Q&A (without recording). The classroom can be used as place to go through the material throughout the semester (Mondays, 10:15-13:00) or to discuss the case studies within the groups. The course material on Ilias is password-protected. The password will be distributed to the students in the introductory lecture. If you are unable to attend, please write an e-mail to the assistant Lukas with the subject “Password Material Risk Management 2025” (after the first lecture). Although the class combines both online and podcast formats, it is highly recommended that you follow the lecture plan, which provides a scheduled timeline to help guide your learning.

After completing the course, students will be able to thoroughly assess and pragmatically handle various types of financial risk typical for financial markets, such as market risk and credit risk. Students will acquire a deeper understanding of financial instruments available to risk managers and learn to contemplate them as effective means to hedge and diversify financial risk. Specifically, students will gain knowledge in the following areas:
- Incentives and risks in financial institutions
- Risk management and firm value
- Credit risk and counterparty risk (estimating default probabilities, structure of credit ratings, credit ratings transition matrices, Credit Value at Risk (CVaR))
- Trading in financial markets (types of markets, clearing, long and short positions in assets, derivatives markets, the risk profile of options, futures, forwards, swaps and other
derivatives)
- Hedging Foreign Exchange (FX) exposure
- Market risk (delta, gamma, vega, theta, and rho exposures, Value at Risk (VaR) models, model risk)
- Origins of the Financial crisis of 2007–2008 (role of credit rating agencies and analysis of their incentives)
- Operational risk
- Regulation: scenario analysis and stress testing in the context of current regulatory
frameworks
- ESG from the risk management perspective
- Case studies in risk management (Bankers Trust, Barings, Fannie Mae and Freddie Mac, Long
Term Capital Management (LTCM), Metallgesellschaft, Northern Rock, Orange County,
Washington Mutual)
ILIAS-Link (Learning resource for course) No registration/deregistration in CTS (Admission in ILIAS possible). ILIAS
Link to another web site
Lecturers Prof. Dr. Kornelia FabisikInstitute of Financial Management 
ECTS 6
Recognition as optional course possible No
Grading 1 to 6
 
Dates Monday 10:15-13:00 Weekly
Thursday 5/6/2025 08:15-10:15
Tuesday 9/9/2025 16:15-18:15
 
Rooms Hörraum 114, Hauptgebäude H4
External rooms HG 106
HG 201
 
Students please consult the detailed view for complete information on dates, rooms and planned podcasts.