2016/2017
BA-BISHO2002U Risk Management
| English Title |
| Risk Management |
|
|
| Language |
English |
| Course ECTS |
7.5 ECTS |
| Type |
Mandatory |
| Level |
Bachelor |
| Duration |
One Quarter |
| Start time of the course |
Autumn, Second Quarter |
| Timetable |
Course schedule will be posted at
calendar.cbs.dk |
| Study board |
Study Board for BSc in International Shipping and
Trade
|
| Course
coordinator |
- Ken L. Bechmann - Department of Finance
(FI)
|
| Main academic
disciplines |
|
|
|
Last updated on
19-07-2016
|
| Learning objectives |
To achieve the grade 12, students
should meet the following learning objectives with no or only minor
mistakes or errors: At the end of the course, the students must be
able to
- Describe the main sources of risk in the shipping industry
- Discuss how risk is identified, measured, reported and
managed
- Discuss the role of risk management in value creation
- Define the financial hedging instruments that are available for
shipping firms
- Discuss and analyze hedging strategies relevant for shipping
firm
|
| Examination |
The exam in the subject consists of two parts:
| Risk
Management - midterm: | | Sub exam weight | 40% | | Examination form | Home assignment - written product | | Individual or group exam | Group exam | | Number of people in the group | 3-5 | | Size of written product | Max. 30 pages | | Assignment type | Case based assignment | | Duration | 72 hours to prepare | | Grading scale | 7-step scale | | Examiner(s) | One internal examiner | | Exam period | Winter and Winter | | Make-up exam/re-exam | Same examination form as the ordinary
exam |
| Risk
Management - final: | | Sub exam weight | 60% | | Examination form | Written sit-in exam | | Individual or group exam | Individual exam | | Assignment type | Written assignment | | Duration | 4 hours | | Grading scale | 7-step scale | | Examiner(s) | One internal examiner | | Exam period | Winter and Winter | | Aids allowed to bring to the exam | Limited aids, see the list below:
- Written sit-in-exam on CBS' computers
- Access to personal drive (S-drive) on CBS'
network
| | Make-up exam/re-exam | Same examination form as the ordinary exam If the number of registered candidates for the make-up
examination/re-take examination warrants that it may most
appropriately be held as an oral examination, the programme office
will inform the students that the make-up examination/re-take
examination will be held as an oral examination
instead. |
|
| Course content and
structure |
|
The uncertainty involved in ownership and operation of ships
has become quite important in recent years as stakes are higher for
owners, operators and investors. Agents in the shipping industry
face risk from the international and competitive environment in
which they operate. Risk emanate from fluctuations in e.g. freight
rates, bunker prices, or ship prices as well from the choice of
contract during ship operation, finance and credit terms.
The course will start with identifying the main sources of risk
relevant for the shipping industry. Measuring of risk through
various risk measures, including the commonly used Value-at-Risk,
will be introduced and finally, possible hedging instruments
including a range of different derivatives are introduced and their
use in different hedging strategies will be covered.
The course builds on prerequisites from Maritime Economics,
Maritime Law, Statistics and Corporate
Finance. |
|
| Teaching methods |
| The course will consist of usual
lectures, exercises, and case analyses and discussions. The
exercises will integrate Excel as a very useful tool in risk
management for example in calculating risk measures and in
analyzing different hedging strategies. The cases will illustrate
the practical applications of the theory focusing on the shipping
industry. It is assumed that students participate actively in the
lectures – and especially in these case analyses and
discussions. |
| Student workload |
| lecture |
42 hours |
| preparation |
164 hours |
|
| Expected literature |
|
The curriculum will be uploaded prior to the course on LEARN but
will most likely be:
- Chapters in Alizadeh, Amir H. and Nikos K. Nomikos: Shipping
Derivatives and Risk Management, Palgrave Macmillan, 2009.
- Chapters in Martin Stopford: Maritime Economics, Routledge,
2009
- Chapters in Philippe Jorion: Value- at Risk, McGraw-Hill,
2007
- Various research articles (theoretical and empirical)
- Cases
- Other readings like newspaper articles and articles for
practitioners
|
Last updated on
19-07-2016
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