GRADUATE SCHOOL
Logistics Management (Without Thesis)
ECON 516 | Course Introduction and Application Information
| Course Name |
Economics of Risk and Institutional Risk
|
|
Code
|
Semester
|
Theory
(hour/week) |
Application/Lab
(hour/week) |
Local Credits
|
ECTS
|
|
ECON 516
|
Fall/Spring
|
3
|
0
|
3
|
7.5
|
| Prerequisites |
None
|
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| Course Language |
English
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| Course Type |
Elective
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| Course Level |
Second Cycle
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| Mode of Delivery | - | |||||
| Teaching Methods and Techniques of the Course | - | |||||
| Course Coordinator | - | |||||
| Course Lecturer(s) | ||||||
| Assistant(s) | - | |||||
| Course Objectives | To teach students the fundamentals of risk management and its evolution over time. |
| Learning Outcomes |
The students who succeeded in this course;
|
| Course Description | The course focuses on the fundamentals of risk management and its evolution over time. It focuses on how to define, measure and manage risk by taking the students through a historical journey and introducing the heroes that contributed to the profession, from Bernoulli to Laplace, to Keynes, Kenneth Arrow, the father of risk management and derivatives. Later in the semester the course focuses on modern allocations of risk management with specific emphasis on company balance and bank balance sheets, operations of insurance companies etc. It concludes with tools to manage risk. |
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Core Courses | |
| Major Area Courses | ||
| Supportive Courses | ||
| Media and Management Skills Courses | ||
| Transferable Skill Courses |
WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES
| Week | Subjects | Related Preparation |
| 1 | Risk Definitions, Risk Types and Risk Resources | • Defining Risk (Glyn A. Holton) http://thegordian.net/wp-content/uploads/2006/10/risk.pdf • Types of Risks—Risk Exposures http://catalog.flatworldknowledge.com/bookhub/1?e=baranoff-ch01_s04 |
| 2 | Risk theories | • History of Finance (Merton H. Miller) • Risk, theory, reflection: Limitations of the stochastic model of uncertainty in financial risk analysis (Barry du Toit ) |
| 3 | Institutional Risk Management | Rethinking risk management (René M. Stulz) |
| 4 | Risk Analysis in Economics | Systemic Risk And The Macroeconomy: An Empirical Evaluation http://www.nber.org/papers/w20963 |
| 5 | Risk Analysis in Finance | • The Challenges of Risk Management in Diversified Financial Companies (Christine M. Cumming and Beverly J. Hirtle) • How do global investors differentiate between sovereign risks? The new normal versus the old, Marlene Amstad, Eli Remolona and Jimmy Shek |
| 6 | Risk Measurement Models and Techniques | Quantitative Risk Management: Concepts, Techniques and ToolsAlexander J. McNeil Rudiger ¨ Frey Paul Embrechts |
| 7 | Application of Risk Measurement | • Volatility, Correlation And Tails For Systemic Risk Measurement (Christian T. Brownlees and Robert Engle) • Credit risk measurement: Developments over the last 20 years (Edward I. Altman, Anthony Saunders) |
| 8 | Mid-Term | |
| 9 | Risk Analysis of Non Finance Sectors | Management of non-financial risks http://www.bis.org/publ/othp04_8.pdf |
| 10 | Risk Management Applications of Non Finance Sectors | • Non-financial risk assessment in mergers, acquisitions and investments (Erik Allenstr¨om and Fredrik Njurell) • Financial and Non-Financial Business Risk Perspectives –Empirical Evidence from Commercial Banks (Khizer Ali, Akhtar and Sadaqat) |
| 11 | Risk Analysis of Finance Sectors | • Systemic Risk Analysis of Turkish Financial Institutions with Systemic Expected Shortfall, İrem Talaslı • Systemic risk in the financial sector: An analysis of the subprime-mortgage financial crisis, Martin F. Hellwig |
| 12 | Risk Management Applications of Finance Sectors | • Excess Credit Risk and Bank’s Default Risk An Application of Default Prediction Models to Banks from EME , C.J. Godlewkski • Econometric Measures Of Systemic Risk In The Finance And Insurance Sectors, Monica Billio, Mila Getmansky, Andrew W. Lo, Loriana Pelizzon |
| 13 | Risk Management by using derivatives | • Derivatives usage in risk management by U.S. and German non-financial firms: A comparative survey, Bodnar, Gordon M.; Gebhardt, Günther • Electricity derivatives and risk management, S.J. Denga, and S.S. Oren |
| 14 | Derivatives Applications for Risk Management | • Dynamic Risk Management of Commodity Operations: Model and Analysis Sripad K Devalkar Ravi Anupindi, Amitabh Sinha • Introduction To Derivatives And Risk Management, D Chance, R Brooks |
| 15 | Presentations and Delivery of Projects | |
| 16 | Review of the Semester |
| Course Notes/Textbooks | |
| Suggested Readings/Materials |
EVALUATION SYSTEM
| Semester Activities | Number | Weigthing |
| Participation |
16
|
10
|
| Laboratory / Application | ||
| Field Work | ||
| Quizzes / Studio Critiques | ||
| Portfolio | ||
| Homework / Assignments | ||
| Presentation / Jury | ||
| Project |
1
|
50
|
| Seminar / Workshop | ||
| Oral Exams | ||
| Midterm |
1
|
40
|
| Final Exam | ||
| Total |
| Weighting of Semester Activities on the Final Grade |
17
|
50
|
| Weighting of End-of-Semester Activities on the Final Grade |
1
|
50
|
| Total |
ECTS / WORKLOAD TABLE
| Semester Activities | Number | Duration (Hours) | Workload |
|---|---|---|---|
| Theoretical Course Hours (Including exam week: 16 x total hours) |
16
|
3
|
48
|
| Laboratory / Application Hours (Including exam week: '.16.' x total hours) |
16
|
0
|
|
| Study Hours Out of Class |
16
|
6
|
96
|
| Field Work |
0
|
||
| Quizzes / Studio Critiques |
0
|
||
| Portfolio |
0
|
||
| Homework / Assignments |
0
|
||
| Presentation / Jury |
0
|
||
| Project |
1
|
40
|
40
|
| Seminar / Workshop |
0
|
||
| Oral Exam |
0
|
||
| Midterms |
1
|
20
|
20
|
| Final Exam |
0
|
||
| Total |
204
|
COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP
|
#
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Program Competencies/Outcomes |
* Contribution Level
|
||||
|
1
|
2
|
3
|
4
|
5
|
||
| 1 | Being able to contribute to the institution the participant works for and the logistics sector by the use of the knowledge and abilities gained during the education period; and manage change in the institution and the sector; | |||||
| 2 | Reaching a competency about contemporary business and technology applications in the area of logistics and supply chain management and analysis and strategy development methods; | |||||
| 3 | Being able to create opportunities by combining supply chain management with information technologies and innovative processes by the use of the interdisciplinary courses the participants take; | |||||
| 4 | Having the ability to develop creative solutions by working on global logistics and supply chain subjects and realizing these by the use of their project management knowledge; | |||||
| 5 | Having the knowledge, abilities and capabilities required for effective logistics and supply chain management by the use of a problem and case analysis based learning; | |||||
| 6 | Being able to examine logistics and supply chain processes with the management science viewpoint, analyze related concepts and ideas by scientific methods; | |||||
| 7 | If continuing to work in the academia, having the necessary information on logistics applications; if continuing to work in the sector, having the necessary knowledge on conceptual subjects; | |||||
| 8 | Being able to specify appropriate research questions about his/her research area, conduct an effective research with the use of necessary methods and apply the research outcomes in the sector or the academia; |
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| 9 | Being able to follow the changes and developments in the sector the participant works in, in order to keep his/her personal and professional competence updated and develop himself/herself when necessary; | |||||
| 10 | Be experts in the fields of logistics and supply chain with the help of the sectorfocused education they receive; | |||||
| 11 | Have the necessary capabilities to pursue doctoral studies in national and foreign institutions | |||||
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest