Risk Management (ILV)

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Specialization AreaInternational Finance
Course numberM4.05172.20.561
Course codeRiMa
Curriculum2016
Semester of degree program Semester 2
Mode of delivery Presencecourse
SPPW1,0
ECTS credits2,0
Language of instruction English

By the end of this course the students should:
understand the basic categories of risk for international business endeavors
understand the role of risk in valuation
estimate the cost of capital
suggest strategies for managing and mitigating risks in an international business context

"Integrated Financial Management" course

I. Risk & Return
Capital markets and the pricing of risk
Optimal portfolio choice and the capital asset pricing model
Estimating the cost of capital

II. Risk Management
Commodity price risk hedging
Exchange rate risk hedging (Currency derivatives: futures, options, swaps)
Interest rate risk hedging
Insurance

Berk J. & DeMarzo P. (2014). Corporate Finance. 3rd ed. Harlow: Prentice Hall/Pearson, chapters 10-13 (risk and return), 20-22 (options) and 30 (risk management).

Madura, J. (2015). International Financial Management. 12th ed. Stamford, CT: Cengage Learning, Part 3: Exchange rate risk management.

Lecture, discussion, examples, business cases, presentations

Class participation: 30%
Presentation: 30%
Exam: 40%