Course Objective

This course offers a comprehensive introduction in Risk Management and
especially related to the banking sector. This course is structured in
six parts, covering the fundamentals and quantitative methods how a bank
works and to what risks they are exposed:
1. the working of banks and the different business models;
2. supervision and banking regulation;
3. different risk types: Credit Risk, Market Risk and Operational Risk;
4. different risk types: Interest Rate Risk and Liquidity Risk;
5. integrated Risk Management and Stress Testing;
6. fundamental uncertainty and Complexity.

All six parts of the course are closely knitted to the learning goals of
Academic and Research Skills and Bridging Theory and Practice. You
will learn to think as a risk manager and will be challenged to have a
holistic view.

Upon successful completion of the course students are able to:
- Explain and analyse the working of bank and the business models;
- Outline and interpret regulation and the impact on banks;
- Explain, analyse and evaluate the different risk types;
- Identify and apply different quantitative risk measure techniques;
- Create and discuss a view on integrated risk management and
uncertainty.

Course Content

You will learn the fundamentals of banking and the working of banks in
the financial markets. What are the risks where the banks have to deal
with? What quantitative methods you can you use to identify, monitor and
report the different risks? How are they aligned with each other, and
last but not least, how can
you manage these risks with all this knowledge? The course will cover
balance sheet management and the impact on the business model. How can
you optimize your balance sheet and develop a sustainable business model
taking all the risks into account. You will be able to interpret
banking regulation and have a good view on the supervisory authorities.
Upon completion you will be challenged to have a holistic view on risk
management and discussions will take place regarding instability and
uncertainty.

Teaching Methods

Interactive lectures and Tutorials

Method of Assessment

Final written exam (Individual assessment) and assignments.

Entry Requirements

There is no formal entrance requirement for the Deloitte minor RM except
for VWO Wiskunde A (or B).

Literature

Richard Apostolik and Christopher Donohue (2015): Foundations of
Financial Risk: An Overview of Financial Risk and Risk-based Financial
Regulation, 2nd Edition, GARP (Global Association of Risk
Professionals). ISBN: 978-1-119-09805-8.

Additional readings might be announced on Canvas.

Target Audience

The Deloitte minor RISK is for students from all bachelor programmes
(with some exceptions, see the admission criteria below) who want to
acquire familiarity with Risk Management and Financial Institutions.

Recommended background knowledge

Finance I; Accounting I; A basic course in quantitative methods and/or
statistics is strongly recommended.