4006693: Risk Management & Financial Institutions

Qualifications

• • Know and characterize the most important financial risk classes (market, credit and operational risks).
  • Know the tools how to measure specific risks (distributions, down-side risk measures, sensitivity measures etc.
  • Know the most important actors on financial markets and their roles and responsibilities.
  • Gain basic knowledge about financial intermediation and show the associated risks (on- & off balance sheet).
  • Know the basic aspects of bank regulations.
  • Interpret the relevant risk measures.
  • Describe the use of derivatives to control risks.
  • Understand the role of different types of financial institutions.
  • Understand the difference between acting on financial markets and financial intermediation.
  • Describe the specific risks of financial intermediation.
  • Know the main goals of bank regulations and the tools to reach them.
  • Use risk measures to quantify risk and calculate them.
  • Valuate derivatives with the model of arbitrage.
  • Show that they can decide which risk measures are appropriate for specific risk classes.
  • Analyze the use of hedging strategies.
  • Find the fair value of derivatives by using parameters (Greeks).
  • Conceptualize and evaluate a risk management process, which identifies and quantifies risks and displays the design/use of hedging tools and their valuation.
  • Combine the roles of financial institutions and regulations to understand financial markets.
• • Gain expert knowledge in risk management and financial institutions and regulatory standards.
  • Understand the complex concept of risk management and are able to connect the different roles of financial institutions.
  • Use methods and models to control risk in unknown decision situations. Calculate optimal hedging strategies.
  • Develop abilities to understand and analyze mathematical relationships and models.
  • Evaluate models and decide which of the models fits their needs best.
• • Work and motivate students who tend to give up as a reaction to the difficulty of mathematical problems.
  • Take responsibility and organize/explain their solution to others who have problems and tend to give up.
• • Understand and critically discuss the arguments of fellow students.
  • Understand the flaws and problems of fellow students, reaction without offense.