After completing this course the student will have the ability to

· explain the institutional background for modern risk management in the banking industry,

· identify risks

· quantify risks (focus is on credit risk)

· aggregate risks and derive an appropriate capital allocation

· apply a risk-based pricing and management

· critically review models and concepts

· efficiently work in groups

During the lecture, the students get the relevant information based on the presentation of the slides. Thereafter, case studies and examples are used to gain a deeper understanding of the content.

· Good knowledge of financial markets and instruments

· Good knowledge of statistical inference

· Basic knowledge of corporate finance

· Excellent command of R