COURSE INTRODUCTION AND APPLICATION INFORMATION


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 Solving
Q&A
Lecture / 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;
  • Define risk and related concepts
  • Explain the need for “enterprise risk management” approach
  • Distinguish various types of risks
  • Understand the role of management in risk management
  • Learn different hedging techniques and instruments
  • Interpret the links between corporate governance, internal controls and risk management.
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

 



Course Category

Core Courses
Major Area Courses
Supportive Courses
X
Media and Managment Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Required Materials
1 Risk Concept and History of Derivatives
2 Introduction, Main derivatives products, types of traders Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 1
3 Introduction, Hedging using derivatives Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 1
4 Futures markets & central counterparties Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 2
5 Hedging strategies using futures Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 3
6 Determination of forward and futures prices Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 5
7 Determination of forward and futures prices (contd) Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 5
8 Swaps Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 7
9 Midterm Exam
10 Securitization and the financial crisis of 2007–8 Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 8
11 Mechanics of options markets Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 10
12 Mechanics of options markets (contd) Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 10
13 Credit risk and credit derivatives Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 24 & 25
14 Derivatives mishaps, what we can learn from them?, Turkish Derivatives Markets Hull, John C. Options, Futures, and Other Derivatives, 11th Edition, Chapter 37
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.

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
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

ECTS / WORKLOAD TABLE

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

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To be able to have a grasp of basic mathematics, applied mathematics or theories and applications of statistics.

2

To be able to use advanced theoretical and applied knowledge, interpret and evaluate data, define and analyze problems, develop solutions based on research and proofs by using acquired advanced knowledge and skills within the fields of mathematics or statistics.

X
3

To be able to apply mathematics or statistics in real life phenomena with interdisciplinary approach and discover their potentials.

4

To be able to evaluate the knowledge and skills acquired at an advanced level in the field with a critical approach and develop positive attitude towards lifelong learning.

X
5

To be able to share the ideas and solution proposals to problems on issues in the field with professionals, non-professionals.

X
6

To be able to take responsibility both as a team member or individual in order to solve unexpected complex problems faced within the implementations in the field, planning and managing activities towards the development of subordinates in the framework of a project.

7

To be able to use informatics and communication technologies with at least a minimum level of European Computer Driving License Advanced Level software knowledge.

X
8

To be able to act in accordance with social, scientific, cultural and ethical values on the stages of gathering, implementation and release of the results of data related to the field.

9

To be able to possess sufficient consciousness about the issues of universality of social rights, social justice, quality, cultural values and also environmental protection, worker's health and security.

10

To be able to connect concrete events and transfer solutions, collect data, analyze and interpret results using scientific methods and having a way of abstract thinking.

11

To be able to collect data in the areas of Mathematics or Statistics and communicate with colleagues in a foreign language.

12

To be able to speak a second foreign language at a medium level of fluency efficiently.

13

To be able to relate the knowledge accumulated throughout the human history to their field of expertise.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest