Financial Risk Analysis and Management

Program Type:

Thesis

Non Thesis

Course Code:

FE 511

P:

3

Lab:

0

Credits:

3

ECTS:

10

Course Objectives:

It is the transfer of financial risks, identification, measurement and analysis methods.

Course Content:

Financial innovation; new types of risk and evolution of risk management products; sources of risk and risk profile; measuring market risk, credit risk, operational and legal risks; analytical models and estimation problems; using and designing derivative instruments to manage risk; securitization, hedging and arbitrage fundamentals; examples and applications of risk management in financial and non-financial institutions.

Teaching Methods:

1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study

Assessment Methods:

A: Testing, B: Presentation C: Homework, D: Project, E: Laboratory

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Programme Learning Outcomes	Teaching Methods	Assessment Methods


Definition and modeling of analytical models, financial risk factors	1,2,3,5	1,2,3	A, B, C, D
Identifying risk sources and using them in risk management	1,2,3,5	1,2,3	A, B, C, D
Estimating and analyzing financial, credit and operational risks by using different risk models	1, 5	1,2,3	A, B, C, D
Basel methods	1, 5	1,2,3	A, B, C, D

Course Flow

COURSE CONTENT
Week	Topics	Study Materials
1	Introduction
2	Risk distribution
3	Greek letters
4	Interest rate risk
5	Value-at-risk
6	Volatility and correlation
7	Midterm Exam
8	Credit risk
9	2007 credit crisis
10	Basel methods and regulation
11	Scenario analysis and stress testing
12	Operational and liquidity risk
13	Avoiding mistakes in model risk and risk management
14	Final Exam

Recommended Sources

RECOMMENDED SOURCES
Textbook			Risk management and financial institutions: John C. Hull
Additional Resources			Course Notes Course website, lecture notes, financial markets laboratory, financial calculator, online resources, excel type software.

Material Sharing

MATERIAL SHARING
Documents			Guidelines and additional examples for Lecture Topics and Homework Assignments
Assignments			Homework assignments
Exams			Midterm Exam and Final Exam

Assessment

ASSESSMENT
IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-Term	1	60
Class Performance	1	40

	Total	100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		50
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		50
	Total	100

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAMME
No	Program Learning Outcomes	Contribution
No	Program Learning Outcomes	1	2	3	4	5
1	It uses the knowledge and skills it has internalized in the fields of Economics, Finance, Statistics and Computer Science in interdisciplinary studies and produces different fields of application.			X
2	With the awareness of lifelong learning and questioning, it follows national and international publications; It is expected to expand the limit of knowledge with scientific articles by reaching the level of preparing works in accordance with academic rules.			X
3	Designs, implements, solves and interprets analytical, modeling and empirical research; This way it makes predictions.				X
4	When he is involved in business life, he is expected to blend his knowledge in different fields with his differences and competencies and reflect them to his individual career.		X
5	With his English proficiency, he follows the knowledge and developments in his field at an international level and communicates with his colleagues.			X
6	Uses computer software and information and communication technologies required by related fields at an advanced level.		X

ECTS

ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the exam week: 15x Total course hours/week)	16	3	48
Hours for off-the-classroom study (Pre-study, practice, review/week)	16	6	96
Homework	1	60	60
Mid-term	1	20	20
Final	1	30	30
Total Work Load			254
Total Work Load / 25 (h)			10.16
ECTS Credit of the Course			10

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