| Course Type | Elective Course |
|---|
| Course Level | Bachelor's Degree |
|---|
| Year of Study | - |
|---|
| Semester | - |
|---|
| ECTS | 5 |
|---|
| Name of Lecturer(s) |
|
| Learning Outcomes |
At the end of this course, the students;
- Define risk and related concepts.
- Explain financial risk management processes.
- Understand the operation and usage of futures contracts, options contracts, and swaps.
- Gain knowledge about credit derivatives.
|
| Mode of Delivery | Face to face |
|---|
| Prerequisites | No |
|---|
| Recommended Optional Programme Components | None |
|---|
| Course Description | This course provides students with knowledge on financial risks, risk measurement, risk management, derivatives, and the use of derivatives as risk management tools, while also enhancing their analytical and interpretive skills. |
|---|
| Course Contents |
| WEEK |
TOPICS |
|
1st Week |
Financial risks and sources of risk |
|
2nd Week |
Financial risk management: definition, objectives, stages |
|
3rd Week |
Credit risk and its management |
|
4th Week |
Liquidity risk and its management |
|
5th Week |
Interest rate risk and its management |
|
6th Week |
Exchange rate risk and its management |
|
7th Week |
Value at risk |
|
8th Week |
Midterm exam |
|
9th Week |
Futures and forwards contracts as risk management tools |
|
10th Week |
Swaps as risk management tools |
|
11th Week |
Options as risk management tools |
|
12th Week |
Credit default swaps (CDS) and collateralized loans (CLN) |
|
13th Week |
Credit spread options (CSO) and total return swaps (TRS) |
|
14th Week |
General review |
|
| Recommended or Required Reading | Hull, J. C. (2023). Risk management and financial institutions (6th ed.). Wiley Finance.
Malz, A. M. (2011). Financial risk management: Models, history, and institutions. John Wiley & Sons. |
|---|
| Planned Learning Activities and Teaching Methods |
- Lecture
- Discussion
- Questions/Answers
|
|---|
| Assessment Methods and Criteria |
|
Quantity |
Percentage (%) |
| Mid-term |
1 |
40 |
| Total(%) |
|
40 |
| Contribution of In-term Studies to Overall Grade(%) |
|
40 |
| Contribution of Final Examination to Overall Grade(%) |
|
60 |
| Total(%) |
|
100 |
|
| ECTS Allocated Based on Student Workload |
| Activities |
Quantity |
Duration (Hour) |
Total Workload (Hour) |
| Midterm exam |
1 |
1 |
1 |
| Preparation for Quiz |
|
|
|
| Individual or group work |
14 |
3 |
42 |
| Preparation for Final exam |
1 |
40 |
40 |
| Course hours |
14 |
3 |
42 |
| Preparation for Midterm exam |
1 |
25 |
25 |
| Laboratory (including preparation) |
|
|
|
| Final exam |
1 |
1 |
1 |
| Homework |
|
|
|
| Total Work Load | 151 |
| Total Work Load / 30 (h) | 5.03 |
| ECTS Credit of the Course | 5 |
|
| Language of Instruction | Turkish |
|---|
| Work Placement(s) | No |
|---|
