Banking and Risk Management

What it is about

The module conveys the fundamentals of banking business, regulation and risk measurement, as well as basic knowledge on financial derivatives. You will learn how banks operate, why bank regulation and central banks are important, how futures and options are valued, and how different risk measures work and can be categorized.

What you will be able to do

• Explain the business model of banks and their products
• Explain causes of bank runs and the importance of central banks/regulation
• Evaluate prices of futures and options
• Apply and assess different risk measures
• Analyze the advantages and disadvantages of risk measures (e.g., duration, convexity, VaR)

What the module consists of

• LectureProvision of basic knowledge, theoretical concepts and practical examples
• Integrated exercisesApplication of theoretical knowledge to concrete questions and case studies
• Guest lecturesInsights into practice from external speakers

Teaching method

• VorlesungProvides foundational knowledge, theory and practical examples
• Discussions/active participationDeepens understanding through controversial discourse
• Exercises/case studiesPromotes the practical application of theory
• Guest lecturesOffers insights into practice