INTERNATIONAL BURCH UNIVERSITY
Faculty of Economics and Social Sciences
Department of Banking and Finance
2015-2016

SYLLABUS
Code Name Level Year Semester
BAF 201 Risk Management in Banking Undergraduate 2 Fall
Status Number of ECTS Credits Class Hours Per Week Total Hours Per Semester Language
Compulsory 5 2 + 1 119

Instructor Assistant Coordinator
Sanel Halilbegović, Assist. Prof. Dr. Zana Pekmez Sanel Halilbegović, Assist. Prof. Dr.
[email protected] [email protected] no email

The course examines the identification, measurement, monitoring and control of risk within banking institutions. The primary focus is on the techniques that bank use to modify and reshape risk. Several tools related to the measurement of risk will be explained, including value at risk.

COURSE OBJECTIVE
To give students an understanding how banking institutions manage the risk and which tools can be used in risk measurement.

COURSE CONTENT
Week
Topic
  1. Fundamental issues of risk management
  2. Commercial banking business models – Asset-Liability Management
  3. Banking - Quantifying interest rate risk
  4. Banking - Managing interest rate risk
  5. Off-balance sheet approaches to interest rate risk management
  6. Banking risk measurement: Value at risk
  7. Preparation for midterm exam
  8. Midterm Exam
  9. Comparison of ALM and VAR approaches to risk management
  10. The role of securitization in asset liability management
  11. Banking risk: Credit risk
  12. Banking risk: Liquidity risk
  13. Banking risk: Operational risk and abuse of financial services
  14. Regulation as a force shaping the banking sector
  15. Preparation for final exam

LABORATORY/PRACTICE PLAN
Week
Topic

    TEACHING/ASSESSMENT
    Description
    • Interactive Lectures
    • Practical Sessions
    • Presentation
    • Discussions and group work
    • Assignments
    • Case Studies
    • Use of educational films
    Description (%)
    Method Quantity Percentage (%)
    Homework10
    Midterm Exam(s)30
    Presentation10
    Final Exam150
    Total: 100
    Learning outcomes
    • Identify the role of securitization in asset liability management
    • Debate recent events concerning banking institutions and their implications for effective risk management
    • Explain economic rationale for risk management
    • Analyze the methods to assess risk in banking institutions
    • Discuss how banking institutions manage risk using on and off balance sheet techniques
    TEXTBOOK(S)
    • Saunders & Cornett. (2014). Financial Institutions Management – A Risk Management Approach. 8th edition. McGraw Hill.

    ECTS (Allocated based on student) WORKLOAD
    Activities Quantity Duration (Hour) Total Work Load
    Lecture (14 weeks x Lecture hours per week)15230
    Laboratory / Practice (14 weeks x Laboratory/Practice hours per week)15115
    Midterm Examination (1 week)122
    Final Examination(1 week)122
    Preparation for Midterm Examination11515
    Preparation for Final Examination12525
    Assignment / Homework/ Project21020
    Seminar / Presentation11010
    Total Workload: 119
    ECTS Credit (Total workload/25): 5