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2023/2024  KAN-CSCAO1004U  Risk Management and Corporate Finance

English Title
Risk Management and Corporate Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for cand.merc. and CSCA (CSCA)
Course coordinator
  • Charlotte Østergaard - Department of Finance (FI)
Main academic disciplines
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 29-11-2023

Relevant links

Learning objectives
The student should demonstrate clarity in the understanding and presentation of the following learning objectives:
  • Apply capital budgeting techniques and perform valuations.
  • Understand the impact of different financing decisions on a firm's cash flow.
  • Identify sources of costs and benefits of equity and debt financing.
  • Understand hedging techniques and risk management of corporate risks.
Course prerequisites
Admission req.
Bachelor level
Risk Management and Corporate Finance:
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-point grading scale
Examiner(s) One internal examiner
Exam period Autumn
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
  • In Paper format: Books (including translation dictionaries), compendiums and notes
The student will have access to
  • Access to Canvas
  • Access to the personal drive (S-drive) on CBS´ network
  • Advanced IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Course content, structure and pedagogical approach

The course builds on the law of one price as the underlying theoretical principle and discusses how financial frictions affects decision-making. It is a fundamental finance course, which complements introductory bachelor level corporate finance courses.


The first part of the course provides the students with an understanding of corporate finance. The core elements covered in this part of the course are the valuation of investment projects, corporate finance polices, payout policy, and capital structure choice. The second part of the course investigates corporate risk management and covers financial options, real options, hedging of corporate risk, and international risk management.

Description of the teaching methods
The course contains the following elements:

• Research and theory based class lectures.
• Class exercises - preparing the student for the written exam.
• Student involvement through exercise classes and discussions.
Feedback during the teaching period
Students are encouraged to active participation in lectures and exercises.

Exercise classes will feature a large number of exercises preparing the student for the written exam. Students are expected to have worked with the exercises before
classes so that they can ask questions and participate in discussions during classes.

Students can use office hours for individual feedback.
Student workload
Lectures 100 hours
Exercises 70 hours
Exam 36 hours
Expected literature

“Corporate Finance” by Jonathan Berk and Peter DeMarzo, 5th edition, Pearson

(We will use the newest edition of the book).

Selected academic articles.

Last updated on 29-11-2023