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
X
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Required Materials
1 Course Introduction, Overview, and Methodology
2 Introduction to financial and non-financial risks Hull (2010)-Chapter 1
3 Firm Value, Corporate Governance and Risk Management **Farooq, M., Khan, I., Kainat, M., & Mumtaz, A. (2025). Corporate social responsibility and firm value: the role of enterprise risk management and corporate governance. Corporate Governance: The International Journal of Business in Society, 25(3), 631-663. **Balachandran, B., & Faff, R. (2015). Corporate governance, firm value and risk: Past, present, and future. Pacific-Basin Finance Journal, 35, 1-12.
4 Financial Products: Equity, fixed income, collective investment, innovative products and derivatives Hull (2010)-Chapter 5
5 Financial Risks: Market, credit, operational, liquidity and derivative risks Hull (2010)-Chapter 12-14-18
6 Non-Financial Risks: Environmental, Social, and Governance (ESG) Risks **Wong, A. (2014). Corporate sustainability through non-financial risk management. Corporate Governance, 14(4), 575-586. **Cicchiello, A. F., Marrazza, F., & Perdichizzi, S. (2023). Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms. Corporate Social Responsibility and Environmental Management, 30(3), 1121-1128. **Wong, A. (2014). Corporate sustainability through non-financial risk management. Corporate Governance, 14(4), 575-586.
7 Risk Management Culture and Ethics **Demidenko, E., & McNutt, P. (2010). The ethics of enterprise risk management as a key component of corporate governance. International Journal of Social Economics, 37(10), 802-815. **Asher, A., & Wilcox, T. (2022). Virtue and risk culture in finance. Journal of Business Ethics, 179(1), 223-236.
8 Risk Management Fundamentals: risk measurement, reporting and mitigation Hull (2010)-Chapter 15
9 Midterm Exam
10 Risk Governance and Management Frameworks: Enterprise Risk Management (ERM) **Chairani, C., & Siregar, S. V. (2021). The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance. Meditari Accountancy Research, 29(3), 647-670. **Shah, S. Q. A., Lai, F. W., Shad, M. K., Hamad, S., & Ellili, N. O. D. (2025). Exploring the effect of enterprise risk management for ESG risks towards green growth. International Journal of Productivity and Performance Management, 74(1), 224-249.
11 Case Studies in Financial Risk Management Hull (2010)-Chapter 16 **Stulz, R. M. (2024). Risk, the limits of financial risk management, and corporate resilience. Annual Review of Financial Economics, 17. **Alzayed, N., Eskandari, R., Eshraghi, A., & Yazdifar, H. (2024). Revisiting corporate governance and financial risk‐taking. International Journal of Finance & Economics, 29(4), 4787-4812.
12 Case Studies in ESG Risk Management **Zioło, M., Bąk, I., & Spoz, A. (2023). Incorporating ESG risk in companies’ business models: State of research and energy sector case studies. Energies, 16(4), 1809
13 Presentations: Case Studies in (Un)Succesful (Non-) Financial Risk Management **Fadun, O. S. (2013). Risk management and risk management failure: Lessons for business enterprises. International Journal of Academic Research in Business and Social Sciences, 3(2), 225-239.
14 Presentations: Case Studies in (Un)Succesful (Non-) Financial Risk Management **Sharma, S. (2023). Does ESG risk management ensure better risk management? Evidence from India. Procedia Computer Science, 221, 912-919.
15 Review of the Semester
16 Final Exam
Course Notes/Textbooks

Book: Hull, J. C. (2010). Risk Management and Financial Institutions (2nd ed.). Wiley.
Suggested Readings/Materials

All announcements, results and materials will be available on the Blackboard site of the course.

**Farooq, M., Khan, I., Kainat, M., & Mumtaz, A. (2025). Corporate social responsibility and firm value: the role of enterprise risk management and corporate governance. Corporate Governance: The International Journal of Business in Society, 25(3), 631-663.

**Balachandran, B., & Faff, R. (2015). Corporate governance, firm value and risk: Past, present, and future. Pacific-Basin Finance Journal, 35, 1-12.

**Cicchiello, A. F., Marrazza, F., & Perdichizzi, S. (2023). Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms. Corporate Social Responsibility and Environmental Management, 30(3), 1121-1128.

**Wong, A. (2014). Corporate sustainability through non-financial risk management. Corporate Governance, 14(4), 575-586.

**Demidenko, E., & McNutt, P. (2010). The ethics of enterprise risk management as a key component of corporate governance. International Journal of Social Economics, 37(10), 802-815.

**Asher, A., & Wilcox, T. (2022). Virtue and risk culture in finance. Journal of Business Ethics, 179(1), 223-236.

**Chairani, C., & Siregar, S. V. (2021). The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance. Meditari Accountancy Research, 29(3), 647-670.

**Shah, S. Q. A., Lai, F. W., Shad, M. K., Hamad, S., & Ellili, N. O. D. (2025). Exploring the effect of enterprise risk management for ESG risks towards green growth. International Journal of Productivity and Performance Management, 74(1), 224-249.

**Stulz, R. M. (2024). Risk, the limits of financial risk management, and corporate resilience. Annual Review of Financial Economics, 17.

**Alzayed, N., Eskandari, R., Eshraghi, A., & Yazdifar, H. (2024). Revisiting corporate governance and financial risk‐taking. International Journal of Finance & Economics, 29(4), 4787-4812.

**Zioło, M., Bąk, I., & Spoz, A. (2023). Incorporating ESG risk in companies’ business models: State of research and energy sector case studies. Energies, 16(4), 1809.

**Fadun, O. S. (2013). Risk management and risk management failure: Lessons for business enterprises. International Journal of Academic Research in Business and Social Sciences, 3(2), 225-239.

**Sharma, S. (2023). Does ESG risk management ensure better risk management? Evidence from India. Procedia Computer Science, 221, 912-919.

 

EVALUATION SYSTEM

Semester Activities Number Weighting
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
1
30
Project
Seminar / Workshop
Oral Exam
Midterm
1
30
Final Exam
1
40
Total

Weighting of Semester Activities on the Final Grade
2
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
2.5
40
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
1
25
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 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 language 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