Key words
Risk and Bank Management, IWETO-code: S181 Financial Sciences
Objectives
In international trade every firm and every bank gets confronted with commercial, political and currency risks. These risks have an important impact on both the competitive position of the company as the results of banks.
Students are made familiar with international payment techniques and techniques to hedge these risks. They learn to apply them in practical situations. The increased volatility in the financial markets force banks to hedge their positions of interest.
Firms are often less conscious about these risks, but they nevertheless have a great impact on the market value of the firm. Students get to know different interest-rate hedging techniques.
Topics
- Risk analysis in firms and banks: commercial, political, currency and interest rate risks
- International payment techniques
- Documentary collection and international transfers
- Practice of the documentary credits
- Currency operations: spot and forward contracts
- Currency options
- Currency and interest rate futures
- Forward Rate Agreements (FRA)
- Swaps
- Repos
- Case-studies and exercises
Prerequisites
Basic knowledge of calculation of interest, knowledge of trade documents and Incoterms.
Final Objectives
Knowledge
Job-related (specific):- Knowledge of the financial professional literature
- Knowledge of the carriers of information and the instances that collect information: libraries, multimedia
- Knowledge of the financial products, their possibilities and limitations
- Knowledge of the techniques of risk management
- Knowledge of the evolutions in the own fields of study
- Knowledge of the technical terminology
- Knowing where one can get further training and where one can consult information about that
Skills
General:- Thinking and reasoning power
- Being critical
- Working independently
- Consulting sources
- Acquiring and assimilating information
Job-related (general):-
- Judging offered knowledge (being critical)
- Ability to analyse documents
- Handling numerical data
- Distinguishing problems
- Ability to think in an analytical and problem-solving way
- Thinking logically
- Insight in complex situations
Job-related (specific):- Following the financial and economic reality through professional literature
- Ability to identify and analyse the needs of clients
- Ability to distinguish, think through, formulate and go deeply into a specific problem
- Ability to consult the required sources for solving of a problem
- Ability to calculate the financial consequences of various approaches
- Ability to formulate alternated scenarios
- Ability to come to conclusions quickly
Attitudes
General:- Being critical
- Precision and accuracy
- Eagerness to learn continuously
- Inquisitiveness
Materials used
"KBC: financiële Praktijk van de Buitenlandse handel", Brussel, juni 2003
Syllabus
Cases
'De Tijd' and financial websites.
Study costs
Copies at the unit price determined under Hogeschool rules.
Study guidance
The student can go to the lecturer with individual questions.
Teaching Methods
Lectures supplemented with the method of question-and-answer.
Discussion of cases.
Assessment
- First exam session: written exam 100%
- Second exam session: written exam 100%
Students only enrolled for taking the exams:- First exam session: written exam 100%
- Second exam session: written exam 100%
Lecturer(s)
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