Banking and Risk Management
Module WI000092
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
There are historic module descriptions of this module. A module description is valid until replaced by a newer one.
Whether the module’s courses are offered during a specific semester is listed in the section Courses, Learning and Teaching Methods and Literature below.
| available module versions | |||
|---|---|---|---|
| SS 2021 | WS 2020/1 | WS 2016/7 | WS 2011/2 |
Basic Information
WI000092 is a semester module in English language at Master’s level which is offered in winter semester.
This module description is valid to SS 2021.
| Total workload | Contact hours | Credits (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)
- 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
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
- 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.
- 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).
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.