| 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 |
|
Risk
Management:
|
| Exam
ECTS |
7,5 |
| Examination form |
Written sit-in exam on CBS'
computers |
| Individual or group exam |
Individual exam |
| Assignment type |
Written assignment |
| Duration |
4 hours |
| Grading scale |
7-step scale |
| Examiner(s) |
Internal examiner and external examiner |
| Exam period |
Winter and Winter |
| Aids |
Open book: all written and electronic aids,
including internet access
|
| Make-up exam/re-exam |
Oral exam based on written product |
|
In order to participate in the oral
exam, the written product must be handed in before the oral exam;
by the set deadline. The grade is based on an overall assessment of
the written product and the individual oral performance. |
|
Size of written product: Max. 10
pages |
|
Assignment type: Case based
assignment |
|
Duration: 20 min. per student,
including examiners' discussion of grade, and informing plus
explaining the grade |
|
Preparation time: No
preparation |
|
Examiner(s): If it is an internal
examination, there will be a second internal examiner at the
re-exam. |
|
| 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. |
| Feedback during the teaching period |
| Feedback will be given in class for group
work |
| 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
|
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