FIN 365 "Risk Management and Financial Institutions" (Fall Semester 2016)


The syllabus can be downloaded Initiates file downloadhere.


Opens internal link in current windowDr. Maximilian Wimmer

Date and Location

Weekly on Monday, 5.15-6.45pm, lecture hall B 243 (building A 5, 6B).

The first class is on September 5, 2016.

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.


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 Opens external link in new windowhere.


Please register for the course through the Opens external link in new windowPortal2 system. Registration is open from Sept 05, 2016 through Sept 11, 2016.

Course material

All material for the course will be available at Opens external link in new windowIlias. The slides for the first class can be downloaded Initiates file downloadhere, slides for the Sept 12 class are available Initiates file downloadhere.

Tentative Schedule

NoDateTopic (Book Chapter)
1September 5, 2016Introduction (1), Banks (2)
2September 12, 2016Mutual Funds and Hedge Funds (4), Trading in Financial Markets (5)
3September 19, 2016The Credit Crisis of 2007 (6), How Traders Manage Their Risks (8)
4September 26, 2016Interest Rate Risk (9)
5October 24, 2016Volatility (10), Correlations and Copulas (11)
6October 31, 2016Value at Risk and Expected Shortfall (12)
7November 7, 2016Model-Building Approach (14)
8November 14, 2016Basel I, Basel II, and Solvency II (15), Basel II.2, Basel III, and Other Post-Crisis Changes (16)
9November 21, 2016Operational Risk (23), Liquidity Risk (24)
10November 28, 2016Economic Capital and RAROC (26), Risk Management Mistakes to Avoid (28)
11December 5, 2016Q&A