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Banking and Risk Management

Module WI000092

This Module is offered by Chair of Financial Management and Capital Markets (Prof. Kaserer).

This module handbook serves to describe contents, learning outcome, methods and examination type as well as linking to current dates for courses and module examination in the respective sections.

Module version of WS 2016/7 (current)

There are historic module descriptions of this module. A module description is valid until replaced by a newer one.

available module versions
WS 2016/7WS 2011/2

Basic Information

WI000092 is a semester module in English language at Master’s level which is offered in winter semester.

This Module is included in the following catalogues within the study programs in physics.

  • Catalogue of soft-skill courses
Total workloadContact hoursCredits (ECTS)
90 h 30 h 3 CP

Content, Learning Outcome and Preconditions

Content

- Business model and products of banks
- banking regulation and bank runs
- financial instruments (e.g., futures and options)
- pricing of financial instruments
- risk measures (definitions, applications, calculation)

Learning Outcome

After successful completion of the module, students (1) understand and (2) can explain the business model of banks and their products. They can (3) explain the origins of bank runs and the recent financial crisis as well as the necessity of central banks and banking regulation. Furthermore, they can (4) evaluate prices of futures and options. Finally, students can (5) apply and evaluate various risk measures used in financial institutions as well as (6) analyze their advantages and limitations (e.g., duration, convexity, value at risk).

Preconditions

None

Courses, Learning and Teaching Methods and Literature

Courses and Schedule

Learning and Teaching Methods

The module combines various learning methods:
- Basic knowledge, theoretical concepts and practical examples will be provided through the lecture.
- Controversial discussions and active participation in class are encouraged to deepen understanding of the concepts presented.
- In integrated exercises, students will apply their theoretical knowledge to concrete issues and analyze selected case studies.
- Students will get insights into practice via several guest lectures

Media

Presentation slides, white board

Literature

- Hull, J.C., 2012, Risk Management and Financial Institutions, Third Edition, New Jersey.
- Hull, J.C., 2011, Options, Futures and Other Derivatives, Eighth Edition, Essex.
- Further recommended readings are given in the lecture.

Module Exam

Description of exams and course work

The module examination is based on a written exam (60 minutes). The exam consists of open questions and calculations. By answering questions in text form, students show that they are able to understand and to explain current issues in banking and risk management (e.g., the role of central banks, calculation and limitations of various risk measures). By performing calculations and elaborating on theoretical considerations, students show that they are able to evaluate prices of futures and options. They show their ability to apply and evaluate various risk measures used in financial institutions. Moreover they show that they are able to analyze their advantages and limitations (e.g., duration, convexity, value at risk).
Students are allowed one two-sided DIN A4 page of notes (i.e., formula gallery).

Exam Repetition

There is a possibility to take the exam in the following semester.

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