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International Finance & Risk Management
level of course unit
BachelorLearning outcomes of course unit
International Finance:
Students will
• know short-, medium- and long-term financing instruments.
• are able to evaluate the financial and economic situation of a company based on the analysis of annual financial statements.
• know the basic features of the credit risk process from the perspective of credit institutions.
• know the basic features of a company rating.
• are able to calculate and negotiate financing costs.
Risk Management:
Students will
• know the legal basis and framework for risk management.
• are able to assign tasks to the individual phases of a risk management cycle.
• can identify and typologize different types of risks.
• can quantify and assess risks.
• can create and interpret a risk matrix.
• can derive measures for risk control.
• understand the basics of risk controlling.
• know the basics of resilience management.
Students will
• know short-, medium- and long-term financing instruments.
• are able to evaluate the financial and economic situation of a company based on the analysis of annual financial statements.
• know the basic features of the credit risk process from the perspective of credit institutions.
• know the basic features of a company rating.
• are able to calculate and negotiate financing costs.
Risk Management:
Students will
• know the legal basis and framework for risk management.
• are able to assign tasks to the individual phases of a risk management cycle.
• can identify and typologize different types of risks.
• can quantify and assess risks.
• can create and interpret a risk matrix.
• can derive measures for risk control.
• understand the basics of risk controlling.
• know the basics of resilience management.
prerequisites and co-requisites
None
course contents
Part A: International Finance
• Theory of cost of capital (trade-off Theory vs. pecking-order theory, WACC concept, tax shield, cost of equity and cost of debt)
• CAPM, WACC & Enterprise Value
• Equity vs. debt
• Short and long-term financial instruments (overdraft, trade credit, factoring, long-term credit, leasing)
• Financing costs (interest rate, interest rate structure, roll-over period, commitment fee, etc.)
• Credit risk process (information asymmetry, adverse selection, moral hazard, creditworthiness, trustworthiness, rating)
• Portfolio theory (risk & return, covariance & correlation, risk-return diagram, calculation of optimal portfolio)
Part B: Risk Management:
• Fundamentals (concept of risk, risk management, risk strategies).
• Types of risks (classification of risks, description of individual risk types in detail)
• Risk management process (basics, risk identification (risk inventory), risk assessment (risk map), risk evaluation, risk response, risk reporting)
• Quantification of risks (risk assessment) (statistical basics, portfolio theory & Capital Asset Pricing Model (CAPM), Value-at-Risk, sensitivity analysis, Monte Carlo simulation)
• Approaches or instruments for managing risks (risks in foreign trade, risks in accounts receivable management & credit risk, risks in interest rate management, risks in foreign exchange management)
• Basics of resilience management (definition, measurement of resilience, approaches to implement resilience in the company).
• Theory of cost of capital (trade-off Theory vs. pecking-order theory, WACC concept, tax shield, cost of equity and cost of debt)
• CAPM, WACC & Enterprise Value
• Equity vs. debt
• Short and long-term financial instruments (overdraft, trade credit, factoring, long-term credit, leasing)
• Financing costs (interest rate, interest rate structure, roll-over period, commitment fee, etc.)
• Credit risk process (information asymmetry, adverse selection, moral hazard, creditworthiness, trustworthiness, rating)
• Portfolio theory (risk & return, covariance & correlation, risk-return diagram, calculation of optimal portfolio)
Part B: Risk Management:
• Fundamentals (concept of risk, risk management, risk strategies).
• Types of risks (classification of risks, description of individual risk types in detail)
• Risk management process (basics, risk identification (risk inventory), risk assessment (risk map), risk evaluation, risk response, risk reporting)
• Quantification of risks (risk assessment) (statistical basics, portfolio theory & Capital Asset Pricing Model (CAPM), Value-at-Risk, sensitivity analysis, Monte Carlo simulation)
• Approaches or instruments for managing risks (risks in foreign trade, risks in accounts receivable management & credit risk, risks in interest rate management, risks in foreign exchange management)
• Basics of resilience management (definition, measurement of resilience, approaches to implement resilience in the company).
recommended or required reading
• Bösch, M. (2019). Globalisierung und Internationales Finanzmanagement: Umfeld, Investition, Finanzierung und Risikomanagement. Stuttgart: Schäffer Poeschel.
• Gleißner, W. (2022). Grundlagen des Risikomanagements: Handbuch für ein Management unter Unsicherheit. München: Franz Vahlen Verlag.
• Hopkin, P., & Thompson, C. (2022). Fundamentals of risk management: Understanding, evaluating and implementing effective enterprise risk management. London, UK: Kogan Page.
• Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2023). International finance: Theory and policy. Essex, UK: Pearsond.
• Vanini, U., & Rieg, R. (2021). Risikomanagement: Grundlagen - Instrumente - Unternehmenspraxis. Stuttgart: Schäffer-Poeschel.
• Gleißner, W. (2022). Grundlagen des Risikomanagements: Handbuch für ein Management unter Unsicherheit. München: Franz Vahlen Verlag.
• Hopkin, P., & Thompson, C. (2022). Fundamentals of risk management: Understanding, evaluating and implementing effective enterprise risk management. London, UK: Kogan Page.
• Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2023). International finance: Theory and policy. Essex, UK: Pearsond.
• Vanini, U., & Rieg, R. (2021). Risikomanagement: Grundlagen - Instrumente - Unternehmenspraxis. Stuttgart: Schäffer-Poeschel.
assessment methods and criteria
• Final exam and
• Quiz
• Quiz
language of instruction
Germannumber of ECTS credits allocated
4eLearning quota in percent
25course-hours-per-week (chw)
3planned learning activities and teaching methods
• 25% of the course is covered by eLearning. A combination of online phases (inductive method for the independent acquisition of knowledge and for the practice of tasks) and presence phases (deductive method, in which assistance is given in the learning process and knowledge is conveyed via frontal lectures) is used.
