4508093: C15 Risk Management and Financial Derivatives

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Semester:SS 18
Lektionen / Semester:74.0 L / 55.5 h
Selbststudium:214.5 h



Masterstudium Finance (01.09.2015)


Financial Risk Management:

  • Identifying, Measuring, and Management of Financial Risks
  • Risk Categories and Associated Models: Market, Credit, Operational and Liqudity Risks
  • Rating Agencies and Credit Ratings
  • Derivatives Markets and Instruments: Forwards, Futures, Options, Swaps, Exotics, Credit Derivatives
  • Pricing of Equity, Fixed Income, Currency, Commodity, and Credit Derivatives
  • Hedging Using Derivatives
  • Financial Engineering


After completion of the module, students realize both the importance and the potential of financial risk management. They relate financial risk management to other areas of finance and within financial institutions. In particular, they know about the risks associated with financial derivatives as well as their potential for applications in risk management and financial engineering.


  • Understand fundamentals in risk management
  • Identify, measure and manage financial risks
  • Select and apply appropriate risk management techniques
  • Know how derivatives and derivatives markets work
  • Price financial derivatives
  • Use Greek variables in risk management and financial engineering
  • Devise and/or analyze derivatives strategies for speculation, hedging and arbitrage
  • Combine basic instruments to achieve desired payoff structures/decompose payoff
structures into their basic components



Interactive lectures with exercises

Voraussetzungen (inhaltlich)

It is recommended to have successfully completed the module Financial Economics and Markets before enrolling in the module Risk Management and Financial Derivatives.


  • Hull, J. C. (2011). Options, futures and other derivatives (8th global ed.). Harlow: Pearson.
  • Hull, J. C. (2015). Risk management and financial institutions (4th ed.). Hoboken, NJ: Wiley.
  • Blunden, T., & Thirlwell, J. (2013). Mastering operational risk. A practical guide to understanding operational risk and how to manage it (2nd ed.). Harlow: Pearson.
  • Caouette, J., Altman, E., Narayanan, P., & Nimmo, R. (2011). Managing credit risk (2nd ed.). Hoboken, NJ: John Wiley & Sons. [Chapter 6]
  • Girling, P.X. (2013). Operational risk management: A complete guide to a successful operational risk framework. Hoboken, NJ: John Wiley & Sons.


Slides will be available via moodle.


See lectures within the module.