INTERNATIONAL BURCH UNIVERSITY
Faculty of Economics and Social Sciences
Department of Banking and Finance
2016-2017

SYLLABUS
Code Name Level Year Semester
BAF 336 Market Risk Analysis Undergraduate 2 Spring
Status Number of ECTS Credits Class Hours Per Week Total Hours Per Semester Language
Compulsory 4 2 + 1 108

Instructor Assistant Coordinator
Malcolm Duerod, Senior Teaching Assistant Malcolm Duerod Malcolm Duerod, Senior Teaching Assistant
[email protected] [email protected] no email

This course introduces the basics of risk management in international business. In addition, explores issues of risk management faced by companies and individuals and discusses how to protect the company and values on the international level. The subject covers the general process of risk management, property and insurance, life and health insurance, annuities and employee benefits.

COURSE OBJECTIVE
The subject develops skills needed for independent work and decision-making in the field of risk management in the international exchange of goods and services. The student acquires the knowledge required to identify risks, assess the exposure to risk and the knowledge needed to make a decision about which risk management methods to apply in concrete cases. In summary: - to develop students’ ability to identify, assess and manage the risks that are inherent in international business transactions. - to reinforce students’ capacities of strategic analysis and application in an international context.

COURSE CONTENT
Week
Topic
  1. Risk Management in International Business Overview Syllabus
  2. Risk and Its Treatment
  3. Risk Aversion & Risk Management by Individuals
  4. Law of Large Numbers / Pooling and Diversification
  5. Case Study Discussion
  6. Insurability of Risk & Loss Control
  7. Corporate Governance
  8. Midterm
  9. Insurance Pricing
  10. Life Insurance
  11. Auto Insurance
  12. Quiz #2
  13. Commercial Insurance
  14. Workers Compensation and Employee Injuries
  15. Final Exam

LABORATORY/PRACTICE PLAN
Week
Topic
  1. Definition of Risk
  2. Types, RM Process & Methods
  3. Objective of RM; Cost of Risk
  4. Quiz #1
  5. Risk Retention and Risk Reduction Decisions
  6. Case Study Discussion

  1. Review for the Midterm
  2. Midterm
  3. Case Study Discussion
  4. Course Paper Due
  5. Financial Hedging with Derivatives
  6. Government Pension and Retirement Theory
  7. Conclusion and Final Exam Review

TEACHING/ASSESSMENT
Description
  • Interactive Lectures
  • Presentation
Description (%)
Method Quantity Percentage (%)
Quiz210
Homework410
Midterm Exam(s)120
Presentation110
Term Paper110
Attendance110
Final Exam130
Total: 100
Learning outcomes
  • Describe the various types of financial instruments used in corporate risk management.
  • Explain the effect of changing market prices of commodities as well as currencies on the risks of an international business.
  • Develop students’ ability to identify, access and manage the risks that are inherent in international business transactions
  • Propose solutions to risks that they identify in the international business operation of MNEs.Increase students’ capacity for strategic analysis and application in an international context
TEXTBOOK(S)

    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 Examination11414
    Preparation for Final Examination11515
    Assignment / Homework/ Project14228
    Seminar / Presentation122
    Total Workload: 108
    ECTS Credit (Total workload/25): 4