FIN 365 "Risk Management and Financial Institutions" (Spring Semester 2017)


The syllabus can be downloaded here.


Opens internal link in current windowDr. Maximilian Wimmer

Date and Location

Weekly on Wednesday, 10.15-11.45am, lecture hall O 148.

The first class is on February 15, 2017.

Course language: English

Course description

This course deals with the ways in which risks are quantified and managed by financial institutions. Among the topics covered are the nature of financial institutions and their regulation, market risk, credit risk (briefly), operational risk, and the credit crisis of 2007.


The course is offered for Bachelor exchange students. Students are assumed to have an undergraduate level knowledge of finance (for instance by having taken an introductory course in investments or asset pricing). Some basic statistical and/or econometric skills are helpful. A sufficient level of spoken and written English language skills is necessary.

Required reading

The textbook for the course is John C. Hull, "Risk Management and Financial Institutions," forth edition, 2015. The online edition is available via the library here.


There is no registration required via the Portal2 system

Course material

All material for the course will be available at Ilias.

Tentative Schedule

NoDateTopic (Book Chapter)
1February 15Introduction (1), Banks (2)
2February 22Mutual Funds and Hedge Funds (4), Trading in Financial Markets (5)
3March 01The Credit Crisis of 2007 (6), How Traders Manage Their Risks (8)
4March 08Interest Rate Risk (9)
5March 15Exercise session
6March 22Volatility (10), Correlations and Copulas (11)
7March 29Value at Risk and Expected Shortfall (12)
8April 05Model-Building Approach (14)
9April 26Basel I, Basel II, and Solvency II (15), Basel II.2, Basel III, and Other Post-Crisis Changes (16)
10May 03Operational Risk (23), Liquidity Risk (24)
11May 10Economic Capital and RAROC (26), Risk Management Mistakes to Avoid (28)
12May 17Exercise session
13May 24