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2020/2021  BA-BISHO2002U  Risk Management

English Title
Risk Management

Course information

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
  • Finance
  • Economics
Teaching methods
  • Online teaching
Last updated on 30-06-2020

Relevant links

Learning objectives
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 and calculate relevant risk measures
  • Discuss the role of risk management and real options in value creation
  • Define the financial hedging instruments that are available for shipping firms
  • Discuss and analyze hedging strategies relevant for shipping firm
Risk Management:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 10 pages
Assignment type Case based assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) Internal examiner and external examiner
Exam period Winter and Winter, 4 hours
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

Case material is distributed to the students 48 hours before the written exam. The questions to the case will given at the written exam. 



Course content, structure and pedagogical approach


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.
Description of the 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.

50 % lectures will be in class but recorded and the rest will be online
Feedback during the teaching period
Feedback will be given in relation to case and exercise discussions.
Student workload
lecture 42 hours
preparation 188 hours
exam + preparation 37 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 30-06-2020