3603727: Profit and risk management

Description

Profitability Analysis

• Single Transaction-Based ROI Analysis
• ROI Analysis with the Aid of Comprehensive Institute Related Result Information

• Determination of Target Figures on the Comprehensive Bank Level
• Determination of Debit Margins/Minimal Margins in Customer Transactions

• Risk Controlling in the Concept of Profit-Oriented Bank Management
• Conception of Bank-Internal Risk Measurement
• Risk Calculation in Profit-Oriented Bank Management

• Concept and Characteristic of Change in Interest Rate Risk
• Analysis of Change of Interest Risk
• Controlling Change of Interest Rate Risk

• Fundamentals of Credit Risk Control
• Quantifying Credit Risk
• Concepts and Measures to Limit Credit Risk

Learning Outcomes

• Analysing bank profitability management
• Identifying key indicators and target values
• Itemising and evaluating bank risk control
• Comparing basic procedures in risk management and their application
• Presenting and illustrating risk calculations
• Explaining interest rate change risk and selecting appropriate concepts for control
• Quantifying bank credit risk and recommending methods for minimising these risks

Lectures Method

Interactive lecture with exercises

Literature

Recommended reading:

• Resti, A. & Sirona, A. (2007). Risk Management and Shareholders' Value in Banking: From Risk Measurement Models to Capital Allocation Policies. John Wiley & Sons.

• Hull , J. (2009), Risk Management and Financial Institutions, 2th ed., Prentice Hall: Upper Saddle River, NJ.
• Matten, C. (2000), Managing Bank Capital, 2th ed., Wiley: New York.
• Bank, M./Gerke, W. (2005), Finanzierung II, Kohlhammer Verlag.
• Jorion, P. (2007). Value at Risk. New York: Mc Graw-Hill.
• Crouhy, M./ Galai, D./ Mark, R.(2007). Risk Management. New York: Mc Graw-Hill.
• Saunders,A./Millon Cornett, M. (2008), Financial Institutions Management, 6th ed., Mc Graw-Hill: New York.

Materials

Lecture slides, exercises, sample questions will be available on Moodle