5610806: C21_Risk Management and Financial Decision Making (VT IFS)

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Semester:WS 23/24
Scheduled in semester:5
Semester Hours per Week / Contact Hours:56.0 L / 42.0 h
Self-directed study time:138.0 h

Module coordination/Lecturers


Bachelor's degree programme in Business Administration (01.09.2021)


Risk Management and Derivatives:

  • Financial risk management
  • Financial derivatives
  • Use of derivatives in financial risk management

Decision Theory:
  • Expected utility theory
  • Mean-variance theory
  • Prospect theory
  • Non-cooperative game theory
  • Asymmetric information
  • Market efficiency
  • Behavioral biases


    • understand the most important concepts of financial risk
    • know why and where financial risks matter
    • understand the logic of the risk management process
    • know the standard types of financial derivatives and assumptions behind their valuation
    • describe pros and cons of different types of derivatives
    • know the most prominent decision theories
    • understand how rational solutions may be achieved by using classical decision models
    • understand the differences between decision under certainty, risk and ignorance
    • know different levels of market efficiency and their implications
    • understand how information is processed on financial markets
    • solve decision problems by using DT models and methods.
    • find the strategic aspect of a problem and transform it into a simplified problem.
    • can explain non-cooperative game theory
    • analyze decision situations.
    • evaluate Investments with EUT, MV and PT, explain and interpret the assumptions of these methods.
    • select and apply methods for identifying risks
    • select and apply methods for measuring risks
    • select and apply methods for managing risks
    • devise suitable hedging strategies using derivatives
    • select methods for risk communication
    • know methods in decision theory
    • know key concepts of experimental research approaches to test market and trader behavior
    • use methods and models on unknown decision situations.
    • calculate optimal solutions and equilibria
    • compare different methods for measuring and controlling risk and uncertainty in decision processes
    • evaluate decision methods in mini cases and find appropriate models for solving typical problems
    • are able to identify Nash Equilibria in simple Prisoner's Dilemma settings
    • pitch solutions to fellow students
    • argue in favor of and against candidate solutions
    • defend their stance in discussions
    • understand and critically discuss the arguments of fellow students.
    • repeat the contents of lectures and exercises in a self-organized way
    • assess their own learning progress during lectures
    • identify their own strengths and weaknesses
    • tolerate different opinions and working styles
    • listen carefully, read and repeat, practice until they understand the logic and mathematics behind models
    • work together and motivate other students who tend to give up as a reaction to the difficulty of mathematical problems
    • use standard software for valuing financial derivatives


Inskription ab WS23/24
Diese Zugangsvoraussetzungen:

  • Für die Anmeldung zu Modulen der Vertiefungsrichtung müssen die Module Statistik, Wirtschaftsmathematik und English I erfolgreich absolviert sein.
  • Zusätzlich muss für die Anmeldung zur Vertiefung IFS das Modul Finanzierung erfolgreich absolviert sein.

Inskription vor WS23/24
Entweder obige Zugangsvoraussetzungen oder:
  • Für die Anmeldung zu Modulen des fünften Semesters müssen alle Module des ersten Studienjahres erfolgreich absolviert sein.
  • Wahlfächer bleiben für diese Regelungen vollständig ausser Betracht.