Risk Management in Banking

COURSE OBJECTIVE
This course offers a comprehensive introduction in Risk Management and especially related to the banking sector. This course is structured in six parts, covering the fundamentals how a bank works and to what risktypes they are exposed:
1. The working of banks and the different business models;
2. Supervision and banking regulation;
3. Different risk types: Credit Risk, Market Risk and Operational Risk;
4. Different risk types: Interest Rate Risk and Liquidity Risk;
5. Integrated Risk Management and Stress Testing;
6. Fundamental uncertainty and Complexity.

All six parts of the course are closely knitted to the learning goals of Quantitative skills, Academic skills, Bridging theory and practice. You will learn to think as a risk manager and will be challenged to have a holistic view.

Upon successful completion of the course students are able to:

• Explain and analyse the working of bank and the business models;
• Outline and interpret regulation and the impact on banks;
• Explain, analyse and evaluate the different risk types;
• Identify and apply different risk measure techniques;
• Create and discuss a view on integrated risk management and uncertainty.

COURSE CONTENT
You will learn the fundamentals of banking and the working of banks in the financial markets. What are the risks where the banks have to deal with? How can you identify, monitor and report the different risk types? How are they aligned with each other, and last but not least, how can you manage these risks with all this knowledge? The course will cover balance sheet management and the impact on the business model. How can you optimize your balance sheet and develop a sustainable business model taking all the risks into account. You will be able to interpret banking regulation and have a good view on the supervisory authorities. Upon completion you will be challenged to have a holistic view on risk management and discussions will take place regarding instability and uncertainty.

TEACHING METHODS
Interactive lectures and Tutorials

TYPE OF ASSESSMENT
Final written exam (Individual assessment) and assignments.

RECOMMENDED BACKGROUND KNOWLEDGE
Finance I; Accounting I; A basic course in quantitative methods and/or statistics is strongly recommended