Risk Management for Financial Institutions
Course Name: Risk Management for Financial Institutions
Teacher: Gikas Hardouvelis
School: Finance and Statistics
Department: Banking and Financial Management
Level: Undergraduate
Course ID: — Semester: 7th
Course Type: Core Course
Prerequisites: No specific prerequisite, yet it is addressed to 4th year students, who should have taken an adequate number of courses in economics, finance and applied statistics/econometrics to be able to synthesize their knowledge
Teaching and Exams Language: Greek
Course Availability to Erasmus Students: Instruction in greek, yet main text is available in english as well amd most extra readings are in english.
For Erasmus students the language of examination is english
Course webpage: –
Specific Teaching Activities |
Weekly Teaching Hours |
Credit Units |
Lectures |
4 |
6 |
Course Content
1. The Financial System, the international financial crisis and the Greek crisis
2. Interest Rate Risk
a. Duration and Portfolio Immunization.
b. Management of Interest rate Risk: Interest Rate Futures & Swaps
c. Management of Interest rate Risk: Securitization
3. Credit Risk
4. Foreign exchange risk and country risk
5. Μarket Risk
6. Capital Adequacy
Teaching Results
STUDENTS ARE INTRODUCED TO MODERN RISK MANAGEMENT IN BANKING, THE HISTRORICAL DEVELOPMENT OF THSESE TECHNIQUES, AS WELL AS THE EVOLVING NATURE OF BANK REGULATION.
Skills
STUDENTS ARE TRAINED IN:
• Searching for, the analysis and synthesis of data and information by the use of appropriate technologies
• Critical thinking
• Development of free, creative and inductive thinking
Teaching and Learning Methods - Evaluation
Lecture: Ιn Class
Use of Information and Communication Technologies: Use of PowerPoint
Teaching Analysis:
Activity |
Semester Workload |
Lectures |
52 |
Study |
98 |
Total |
150 |
Student Evaluation:
In the middle of the semester there is a midterm examination that covers sections (1) and (2) of the reading list. The exam contains (a) questions of general knowledge from the reading material, (b) questions from current economic events and articles in the Financial Press that were discussed in class, (c) arithmetic problems similar to the problems in the textbook, whose solutions are distributed in the beginning of the class.
The midterm exam grade count towards the final grade only if it is better than the final exam grade.
The final exam has a similar structure as the midterm exam but covers all six sections of the course.
Recommended Bibliography
Textbook: Financial Institutions Management: A Risk Management Approach, by A. Saunders & M.M. Cornett, McGraw Hill, New York, 2014, 8th edition, ISBN # 978-0-07-803480-0
ISBN: 978-9963-274-38-3 Broken Hill Publishers 2017
Other readings: From the ECB, BIS, Bank of Greece, etc.
