| Course Name | Financial Risk Management |
| Code | Semester | Theory (hour/week) | Application/Lab (hour/week) | Local Credits | ECTS |
|---|---|---|---|---|---|
| ITF 403 | Fall/Spring | 3 | 0 | 3 | 6 |
| Prerequisites | None | |||||
| Course Language | English | |||||
| Course Type | Elective | |||||
| Course Level | First Cycle | |||||
| Mode of Delivery | - | |||||
| Teaching Methods and Techniques of the Course | Problem SolvingQ&ALecture / Presentation | |||||
| Course Coordinator | ||||||
| Course Lecturer(s) | ||||||
| Assistant(s) | ||||||
| Course Objectives | The main goal of this class is to introduce the tools/techniques of financial risk management as well as its fundamental concepts. The emphasis will be on derivatives and hedging techniques. Detailed information on the enterprise risk management process will be discussed. |
| Learning Outcomes | The students who succeeded in this course;
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| Course Description | This course covers, the evolution of risk management, enterprise risk management approach, fundamental concepts of risk management, goals and strategies in risk management, design and application of risk management systems. |
| Related Sustainable Development Goals |    |
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| Core Courses | |
| Major Area Courses | X | |
| Supportive Courses | ||
| Media and Managment Skills Courses | ||
| Transferable Skill Courses |
| Week | Subjects | Required Materials |
| 1 | Introduction to Risk Management - Definition and types of risk - Evolution of risk management | Lecturer’s Notes |
| 2 | Market Risk - Value-at-Risk (VaR) - Expected Shortfall | Lecturer’s Notes |
| 3 | Credit Risk - Credit scoring models - Default probabilities | Lecturer’s Notes |
| 4 | Liquidity Risk - Measuring and managing liquidity risk - Liquidity stress testing | Lecturer’s Notes |
| 5 | Operational and Model Risk - Internal controls - Model risk validation | Lecturer’s Notes |
| 6 | Case Study: Financial Crises & Risk Management Failures | Lecturer’s Notes |
| 7 | Risk Hedging with Financial Derivatives - Futures, options, swaps | Lecturer’s Notes |
| 8 | Portfolio Risk & Diversification - Risk-adjusted performance - Modern Portfolio Theory (MPT) | Lecturer’s Notes |
| 9 | Midterm Exam | |
| 10 | Stress Testing & Scenario Analysis - Monte Carlo simulations - Regulatory stress tests | Lecturer’s Notes |
| 11 | Risk Management and Regulation - Basel Accords (I, II, III) - IFRS 9 & Dodd-Frank Act | Lecturer’s Notes |
| 12 | Case Study: Application of Risk Management Frameworks | Lecturer’s Notes |
| 13 | AI and Technology in Risk Management - Machine learning applications in risk assessment | Lecturer’s Notes |
| 14 | Presentations | |
| 15 | Review of the Semester | |
| 16 | Final Exam |
| Course Notes/Textbooks | Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Pearson, 2022 |
| Suggested Readings/Materials | All announcements, results and materials will be available on the Blackboard site of the course. |
| Semester Activities | Number | Weighting |
| Participation | 1 | 10 |
| Laboratory / Application | ||
| Field Work | ||
| Quizzes / Studio Critiques | ||
| Portfolio | ||
| Homework / Assignments | ||
| Presentation / Jury | 1 | 20 |
| Project | ||
| Seminar / Workshop | ||
| Oral Exam | ||
| Midterm | 1 | 30 |
| Final Exam | 1 | 40 |
| Total |
| Weighting of Semester Activities on the Final Grade | 3 | 60 |
| Weighting of End-of-Semester Activities on the Final Grade | 1 | 40 |
| Total |
| Semester Activities | Number | Duration (Hours) | Workload |
|---|---|---|---|
| Course Hours (Including exam week: 16 x total hours) | 16 | 3 | 48 |
| Laboratory / Application Hours (Including exam week: 16 x total hours) | 16 | ||
| Study Hours Out of Class | 16 | 3 | 48 |
| Field Work | |||
| Quizzes / Studio Critiques | |||
| Portfolio | |||
| Homework / Assignments | |||
| Presentation / Jury | 1 | 17 | |
| Project | |||
| Seminar / Workshop | |||
| Oral Exam | |||
| Midterms | 1 | 25 | |
| Final Exams | 1 | 30 | |
| Total | 168 |
| # | Program Competencies/Outcomes | * Contribution Level | ||||
1 | 2 | 3 | 4 | 5 | ||
| 1 | To be able to identify and analyze problems in the field of trade and finance, and to develop solutions. | X | ||||
| 2 | To be able to use the theoretical and practical knowledge gained in the field of International Trade and Finance. | X | ||||
| 3 | To be able to analyze the developments in global markets by using critical thinking skills. | |||||
| 4 | To be able to analyze and interpret data in the field of finance, commerce and economics by using information technologies effectively. | |||||
| 5 | To be able to acquire knowledge about the legal regulations and practices in the field. | |||||
| 6 | To be able to foresee and define the risks that could be encountered in the field of trade and finance and to take decisions to manage such risks. | X | ||||
| 7 | To be able to acquire and use verbal and numerical skills necessary for the nature of international trade and finance program. | X | ||||
| 8 | To be able to obtain, synthesize and report the information related to the fields of trade and finance. | |||||
| 9 | To be able to contribute to the solution of problems as individual, team member or leader. | |||||
| 10 | To be able to evaluate the issues related to the field with an ethical perspective and social sensitivity. | |||||
| 11 | To be able to collect data in the areas of International Trade and Finance and communicate with colleagues in a foreign language ("European Language Portfolio Global Scale", Level B1). | |||||
| 12 | To be able to speak a second foreign at a medium level of fluency efficiently. | |||||
| 13 | To be able to relate the knowledge accumulated throughout human history to their field of expertise. | |||||
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest
