2025/2026 KAN-CFSAO1007U Risk Management
English Title | |
Risk Management |
Course information |
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Language | English |
Course ECTS | 7.5 ECTS |
Type | Mandatory |
Level | Full Degree Master |
Duration | One Semester |
Start time of the course | Spring |
Timetable | Course schedule will be posted at calendar.cbs.dk |
Study board |
Study Board for Finance, Economics &
Mathematics
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Course coordinator | |
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Main academic disciplines | |
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Teaching methods | |
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Last updated on 10-04-2025 |
Relevant links |
Learning objectives | ||||||||||||||||||||||||
The course gives the students a theoretical as
well as practical understanding of the risk management process from
the perspective of financial institutions as the process by which
various risk exposures are identified, measured, and controlled. At
the end of the course, students are expected to be able to:
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Course prerequisites | ||||||||||||||||||||||||
The course is not intended to be an introductory course. Students are assumed to be familiar with the concepts, theories, models, and methods taught in the course Financial Market Theory or a similar course. | ||||||||||||||||||||||||
Examination | ||||||||||||||||||||||||
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Course content, structure and pedagogical approach | ||||||||||||||||||||||||
The course will motivate and discuss the need for financial risk management in light of recent financial scandals and disasters and in relation to international capital adequacy requirements for banks and other financial institutions. We will give special attention to derivative instruments, how these instruments are priced, and how these can be actively used in the process of managing financial market risks. Modern capital requirements rely increasingly on Value-at-Risk or related risk measures, and we will take a detailed look at this quantitative risk measurement tool. The course will go through all of the steps necessary for computing reliable Value-at-Risk numbers, e.g. volatility modelling, back-testing, and historical simulation techniques. Throughout the course we will give special attention to derivative instruments and how these can be actively used in the process of managing financial market risks. Credit risk and liquidity risk will also be covered in the course. Overall, the course offers a comprehensive presentation of theoretical as well as practical aspects underlying the measurement and application of risk management. |
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Research-based teaching | ||||||||||||||||||||||||
CBS’ programmes and teaching are research-based. The following
types of research-based knowledge and research-like activities are
included in this course:
Research-based knowledge
Research-like activities
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Description of the teaching methods | ||||||||||||||||||||||||
Lectures, videos, and exercises. | ||||||||||||||||||||||||
Feedback during the teaching period | ||||||||||||||||||||||||
In order to increase the students immediate understanding and reflection of the course material there will be buzz-assignments and questions during the lectures. This gives the students immediate feedback of their understanding of the covered topic. Online and in-class quizzes are offered throughout the course with the purpose of giving the students a quick indication of their understanding of each topic. At the exercise classes the students receive feedback on their solutions to the given exam-relevant exercises. Finally, Students are encouraged to take active part in both lectures and exercises by contributing with questions and comments. The teachers will do their best to provide useful immediate feedback. | ||||||||||||||||||||||||
Student workload | ||||||||||||||||||||||||
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Expected literature | ||||||||||||||||||||||||
Hull, John C. Risk Management and Financial
Institutions. 6th edition. Wiley 2023 (or later
edition).
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