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İzmir Ekonomi Üniversitesi

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    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
    Course Language
    English
    Course Type
    Elective
    Course Level
    Second Cycle
    Mode of Delivery -
    Teaching Methods and Techniques of the Course -
    National Occupation Classification -
    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;

    • will be able to define risk easily.
    • will be able to explain the concept of risk management.
    • will be able to compare the theories that has led to current risk management practices.
    • will be able to explain the macroeconomic and political risk and how to quantify these.
    • will be able to assess the balance sheets of nonbank corporates and banks from a risk perspective.
    • will be able to explain the functions of insurance sector in managing risk.
    • will be able to state how to utilise derivatives to manage every aspect of risk.
    • will be able to follow new developments in the field such as endogenous risk and exogenous risk.
    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.
    Related Sustainable Development Goals

     



    Course Category

    		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

    #
    		 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;
    -
    -
    -
    -
    -
    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

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