ØABED4300 Risk Management Course description

Risk management has become an indispensable tool for the management of non-financial and financial corporations alike. This course will make students familiar with risk measurement and management techniques, their advantages and deficiencies. We will cover different sources of risks and how to measure and manage those risks, with a particular focus on financial risks and value at risk. The course will also discuss the economic rationale for risk management, the regulation of banks, and analyze the role of risk management in the last financial crisis and in connection with famous bankruptcies like Long Term Capital Management and Lehman Brothers.

In risk management, we make heavy use of derivative securities to hedge against risks. For that reason, it is recommended that the student has completed ØABED4200 Derivatives. The class is quantitative and will employ spreadsheets.

The exam papers are assessed by one internal and one external examiner.

At least 25% of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.

None.

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has

• a broad overview of different sources of risks and how they affect the cashflows and the value of the corporation
• knowledge about how to quantify those risks with popular risk measures
• knowledge of how to mitigate or eliminate the risk exposure with standard derivative contracts
• understanding of when risk management adds value to a corporation

Skills

The student can

• identify different sources of risks and quantify a corporation's exposure to them
• apply different estimation techniques to deal with the time-varying riskiness of financial time series
• calculate the impact of different risks using popular risk measures, e.g., Value-at-Risk, for individual positions and for entire portfolios or the entire corporation
• employ appropriate financial instruments to mitigate or eliminate the impact of the different sources of risks

General competence

The student

• is able to quantify and manage the risk of a corporation
• has a critical understanding of the limitations of the various techniques discussed in the course

The course is taught in class/zoom/recorded lectures and students work on and discuss different assignments in groups and plenary sessions.

The management of human resources (HRM) is an important management task in most enterprises. In the practical management work, this area is closely related to financial management, organisation and strategic management. This course concerns the strategic and financial role of HRM, analyses how HRM contributes to value creation and competitiveness, discusses the role of HRM with regard to strategic planning and implementation, analyses the strategic role of contracts, jobs and labour markets, studies relevant compensation systems and how these affects motivation, analyses the strategic impact of turnover and recruitment systems, and studies how analyses and development of skills can be done. The course also covers the societal contingencies for HRM in particular with regard to international HRM. The course builds in particular on Organisation Theory, Leadership, and Business Strategy from the bachelor's degree programme, and on Research Methods for Social Sciences, Microeconomics and Introduction to Managerial Accounting. Recent research and current articles will play a key role in the course.

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has

• advanced knowledge of HR management across national borders and different framework conditions
• in-depth knowledge of compensation, recruitment and competence development management, insight into the relationship between reward systems, organization types, labour markets and forms of affiliation
• research-based knowledge of the connections between enterprises, strategies and their development and management of human resources and developments in this management area
• knowledge about recent developments in the subject area.

Skills

The student can

• engage in strategic and comprehensive HR work
• analyze competence and competence requirements
• consider financial and strategic consequences of HR policy decisions and consider the HR policy consequences of decisions in other areas
• understand and analyze the connection between strategy, human resources and value creation

General competence

The student

• can reflect on the societal aspects of the enterprise's HR policy
• has analytical competence

Varied forms of teaching will be used, with a combination of lectures, guest lectures, cases and class discussions and student presentations.

The exam in the course is a supervised exam of 5 hours.

No aids are permitted.