Kursplan

SYLLABUS

Financial Markets and Financial Institutions. Risk Management, 15 ECTS Credits

COURSE CATEGORY   Single Subject Course
MAIN FIELD OF STUDY
SUBJECT AREA

COURSE CODE

723G32

AIM OF THE COURSE

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.

CONTENTS

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.

TEACHING

The course aim is fulfilled through: lectures, seminars, group work, assignments, report writing and presentations, discussion and assessments. Language of instruction: English.

EXAMINATION

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.

ADMISSION REQUIREMENTS

At least two years of undergraduate studies with at least 60 ECTS credits in Business administration (equivalent)e. Documented knowledge of English equivalent to Engelska B/Engelska 6: internationally recognized test, e.g. TOEFL (minimum scores: Paper based 575 + TWE-score 4.5, and internet based 90), IELTS, academic (minimum score Overall band 6.5 and no band under 5.5), or equivalent.
Exemption from Swedish B.

GRADING

The course is graded according to the ECTS grading scale A-F

CERTIFICATE

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.

COURSE LITERATURE

The course literature is decided upon by the department in question.

OTHER INFORMATION

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