Risk Management

Learning goals

Upon completion of this course, you will understand the following concepts and their application in practice:

- Governance of risk management for financial and non-financial risks (Three lines of defence model, role of the CRO/CFO, roles of risk committees, link to compliance, internal audit and other functions)

- Risk strategy and appetite (Business and risk strategy, limitation of risks) and recent examples of financial and non-financial risks

- Risk management processes (identification, assessment, reporting, mitigation) for

  • Operational Risk
  • Reputational Risk
  • Business/Strategic Risk
  • Market Risk
  • Credit Risk
  • Liquidity Risk

Literature:

Mandatory reading:

  • Fraser, John/Simkins, Betty J. (eds): Enterprise Risk Management, Wiley 2010

Additional reading:

  • Aven, Terje/Renn, Ortwin: Risk Management and Governance, Springer 2010
  • Laycock, Mark: Risk Management at the top, Wiley 2014

Course contents

Risk management is a core competency of all firms. Financial risks (market risk, credit risk, business risk and liquidity risk) as well as non-financial risks (operational risk, reputational risk and strategic risk) are of growing importance across industry sectors. Recent events demonstrated that risk culture and risk governance is still not fully developed at many firms. Thus, while presenting some techniques for quantifying risks, this course is more focused on the qualitative elements of risk management.

The course combines many ways of learning, including the following:

  • Reading the literature and following up-to-date events in the financial press
  • Following lectures in class
  • Participating in class discussions of lecture materials and up-to-date topics
  • Preparing student presentations on defined topics
  • Presenting on defined topics in class

Information

Lectures:
Prof. Dr. Thomas Kaiser

Certification and Credits:
The final grade for the course will be based on a final exam.

You will be allowed to participate in the final exam if you have satisfactorily completed all assignments, have sufficiently attended the course (at least 80 % of the lectures) and participated in the class discussion.