| 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
|
| Examination |
|
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
|
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