Master in Finance
Risk Management Specialization
As the need for professionals with exceptional skills to manage financial risk will continue to grow for many years, GBS now offers future students in the part-time Master in Finance program the opportunity to focus on risk management. The program's increase in modules offered in the area of risk management is supported by the Frankfurt Institute for Risk Management and Regulation (FIRM).
Below is a sample of the risk management modules to be offered within the part-time Master in Finance program.
This course introduces students to the major concepts and instruments for the management of credit risk in both capital markets and banking institutions. In particular, we will discuss various obligor-specific and portfolio risk models and products such as scoring and structural model or CDS and CDOs. This course is based on the belief that analytical methods are best understood by implementing them. The topics will be discussed in class where the theoretical underpinning is presented. This is followed by an implementation in Excel. Although not always the first choice for some problems, it is the major application used in financial institutions and accessible from almost everywhere. Students are not required to have excessive prior knowledge in Excel.
(Prof. Dr. Björn Imbierowicz, Assistant Professor, Department of Finance, Copenhagen Business School)
This course studies key concepts and issues in bank management. As a motivation, it highlights current challenges by analyzing the subprime financial crisis (including a detailed case study on the near failure and rescue of HRE) and the ensuing tightening in bank regulation. A general framework for bank valuation then provides the background against which value-based bank management is discussed. Topics covered include the drivers of bank value and a detailed examination of deposit and loan pricing. The course concludes with an introduction to risk management in banking.
(Prof. Dr. Axel Wieandt, CEO & Chairman, Valovis Bank)
This course provides characteristics of global financial markets, explores the impact of global players and reasons for increasing volatility. It gives examples of financial market crises and their reasons. The course describes the major risk governance institutions, the Basel III framework and its implementation in Europe and the USA. We will discuss the three pillars of the emerging European Banking Union: Single Rule Book, Single Supervisory Mechanism and Single Resolution Mechanism and the strengthened focus on macroprudential risk management. Within the corporate governance part, the four risk governance goals, the legal responsibilities of bank managers (Compliance Risk, Business Judgment Rule), and why Risk Committees could fail will be explained.
The course will provide practical recommendations for Risk Committee meetings and will end with a role-playing game based on a bank takeover case study.
(Dipl.-Volksw. Wolfgang Hartmann, Chairman, Frankfurt Institute for Risk Management and Regulation)
Enterprise risk management is a core competency of all firms, independent of the industry they operate in. Recent events such as major compliance breaches demonstrated that risk culture and risk governance is still not fully developed at many firms. Thus, this course is focused on the qualitative elements of enterprise risk management, involving extensive group work and up-to-date case studies.
(Prof. Dr. Thomas Kaiser)
Further information ...
The aim of this course is to provide an overview of recent theories and empirical findings that constitute the prerequisites to understanding, monitoring, and safeguarding financial stability. The course features a comprehensive treatment of systemic risk in banking, with a special focus on the 2007-08 global financial crisis. We will study the anatomy of modern banking systems and the contagious spread of vulnerabilities in such systems. Moreover, we will study several channels through which systemic banking crises propagate across countries. The course puts large weight on lessons for financial stability policy.
(Dr. Norbert Metiu, Research Economist, Deutsche Bundesbank)
One of the immediate lessons learned from the recent financial turmoil is that there is a need for action in risk management, especially for banks. This is why FIRM strongly supports the training and continuing education on the topics of risk management and regulation at Goethe Business School.