Financial Risk Management (FIN108)


The course unit covers the major theories in financial risk management, modern risk management methods and instruments. The students get acquainted with derivative financial instruments (options, forwards, futures, swaps) and their application in the management of credit, currency, liquidity, counter-party risk as well as the concepts of operational risk and risk budgeting.

The course unit introduces students to the major streams of thought in the contemporary general risk management. It focuses on the risk management methods and techniques from the view of a corporate risk manager; however certain differences of risk management on sovereign as well as personal level are discussed.

Aim of the course

The course unit aims to provide to undergraduate students understanding of principles of risk management theory as well as to help to develop certain skills that would enable students to identify risk management problems and to offer most common solutions to them.

Learning outcomes

  • Define types of financial and non-financial risk on corporate, personal and sovereign level.
  • Calculate and analyse the amounts of major types of financial risk.
  • Apply relevant financial risk management methods, techniques and instruments against given challenges.
  • Define and evaluate various attitudes towards risk management problems.
  • Discuss financial risk management in financial institutions and their regulation.