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Financial Markets and Financial Institutions. Risk Management, 15 ECTS Credits
COURSE CATEGORY   Single Subject Course
  COURSE CODE   723G32
On completion of the course the student should be able to
- explain how financial institutions and markets work, their role in an economy, and why they are considered to require special regulations
- explain different types of risk faced by financial institutions
- identify, measure and manage risks in financial institutions
- from an historical perspective discuss how crises in financial markets are created, and the problems of measuring systematic crises
- explain how regulations of financial markets are constructed and how they have evolved over time as consequences of crises and the development of new financial instruments
- discuss the use of different methods for managing risks in the financial system and within individual financial institutions.
The course focuses on the management of financial markets and financial institutions. Financial institutions play a key role for a well-functioning economy, and are therefore surrounded with special rules and regulations. In spite of the special rules and regulations crises are reoccurring phenomena in financial markets.
The course deals first with basic questions such as why do financial intermediaries exist, and, why are they considered to be so different from other firms that they need special regulations? In order to form a decision about how to deal with risks, risk management requires first that risks are identified and measured. The methods for managing financial risk, introduced in this course, are not only suitable for banks and other financial intermediaries, but for all types of financial organizations such as the treasury department within a non-financial firm. For financial institutions, successful risk management is crucial for protecting and increasing the value of the firm.
The course deals with different types of risks such as systemic risks, interest rate risk, foreign exchange risk, credit and liquidity risks. Methods for measuring and managing these risks are presented and used during the course. Against this background, the course discusses the origin and motivation for regulations. In order to understand how a better regulatory framework might be created, the course looks at possible systematic factors from historical financial crises in the form of both bank and country default.
The course aim is fulfilled through: lectures, seminars, group work, assignments, report writing and presentations, discussion and assessments. Language of instruction: English.
Assignments (group project) and an individual written examination.

Students failing an exam covering either the entire course or part of the course two times are entitled to have a new examiner appointed for the reexamination.

Students who have passed an examination may not retake it in order to improve their grades.

At least two years of undergraduate studies, one of which must be in a discipline relevant to the course. Documented knowledge of English equivalent to "Engelska B"; i.e. English as native language or an internationally recognized test, e.g. TOEFL (minimum scores: Paperbased 575 + TWE-score 4.5, internetbased 90 TWE-score 20), IELTS, academic (minimum score: Overall band 6.5 and no band under 5.5), or equivalent.
The course is graded according to the ECTS grading scale A-F
Course certificate is issued by the Faculty Board on request. The Department provides a special form which should be submitted to the Student Affairs Division.
The course literature is decided upon by the department in question.
Planning and implementation of a course must take its starting point in the wording of the syllabus. The course evaluation included in each course must therefore take up the question how well the course agrees with the syllabus.

The course is carried out in such a way that both men´s and women´s experience and knowledge is made visible and developed.
Financial Markets and Financial Institutions. Risk Management
Financial Markets and Financial Institutions. Risk Management
Department responsible
for the course or equivalent:
IEI - Department of Management and Engineering
Registrar No: 2011-00254   Course Code: 723G32      
    Exam codes: see Local Computer System      
Subject/Subject Area :          
Level   Education level     Subject Area Code   Field of Education  
G2X   Basic level       NA  
The syllabus was approved by the Board of Faculty of Arts and Science 2011-12-13