| 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 are expected to be
able to:
- Describe the central elements of financial risk management and
apply different risk measures
- Describe the main sources of risk in the shipping industry
- Discuss advantages and disadvantages of hedging
- Define, discuss and analyze financial hedging instruments and
hedging strategies relevant for shipping firms
|
| Course prerequisites |
| It is required that the student has knowledge of
finance and financial markets corresponding to a basic
undergraduate course in finance. |
| Examination |
|
Financial Risk
Management in Shipping:
|
| Exam
ECTS |
7,5 |
| Examination form |
Written sit-in exam on CBS'
computers |
| Individual or group exam |
Individual exam |
| Assignment type |
Case based assignment |
| Duration |
4 hours |
| Grading scale |
7-step scale |
| Examiner(s) |
One internal examiner |
| Exam period |
Winter |
| Aids |
Limited aids, see the list below:
The student is allowed to bring - USB key for uploading of notes, books and compendiums in a
non-executable format (no applications, application fragments, IT
tools etc.)
- Any calculator
- Books (including translation dictionaries), compendiums and
notes in paper format
The student will have access to - Access to CBSLearn
- Access to the personal drive (S-drive) on CBS´ network
- Advanced IT application package
At all written
sit-in exams the student has access to the basic IT application
package (Microsoft Office (minus Excel), digital pen and paper,
7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows
Media Player). PLEASE NOTE: Students are not allowed to communicate
with others during the exam :
Read more about exam aids and IT application
packages here |
| 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.
|
Description of the exam
procedure
The examination of this course consists of a final four hour
written exam without internet access. 48 hours before the exam,
case material for the exam will be distributed.
|
|
| Course content and structure |
|
As freight rates, fuel prices, interest rates etc. have become
increasingly volatile, risk management has become even more
important for the shipping industry. In this course, financial risk
management will be defined as the process by which various risk
exposures are identified, measured, and controlled. The course will
start with identifying the main sources of risk relevant for the
shipping industry. Based on this, possible risk measures including
the commonly used Value-at-Risk will be introduced. Finally,
possible hedging instruments including a range of different
derivatives are introduced and their use in different hedging
strategies will be covered. Also credit risk and real options
analysis is covered in the course.
|
| 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 |
| The teaching will be interactive and attempt to
involve the students through discussions of the content of the
course and of smaller exercises. The students will this way receive
some feedback on their understanding of the core topics. The
students will also receive a solution to the final exam with some
feedback to their general performance at the exam. |
| Student workload |
| Teaching |
33 hours |
| Preparation |
147 hours |
| Exam |
26 hours |
|
| Expected literature |
- Chapters in Alizadeh, Amir H. and Nikos K. Nomikos: Shipping
Derivatives and Risk Management, Palgrave Macmillan, 2009.
- Various research articles (theoretical and empirical)
- Cases
- Other readings like newspaper articles and articles for
practitioners
|
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