KS Risk Management

Workload Education level Study areas Responsible person Hours per week Coordinating university
3 ECTS M2 - Master's programme 2. year Business Administration Robert Breitenecker 1 hpw University Bergamo
Detailed information
Original study plan Master's programme Joint Master's Program Global Business - Russia/Italy 2020W
Objectives The discipline is aimed at understanding which are the main risk that international companies face and how these risks can be hedged. In the first part of the course the advantages and the disadvantages of hedging will be analysed. Then the course will focus on how an hedging policy can be structured. Making reference to real cases issues such as the definition of the amount at risk, the definition of the hedging style and the instruments that should be used to hedge will be analysed. Finally we will discuss the role of the Board and the importance of culture on the hedging policy definition and implementation.
Subject Topic 1: Risk Management and hedging

  • Which are the main risks faced by international companies ?
  • What is hedging?
  • Why should companies hedge risks ?
  • How to create a risk-aware culture

Topic 2: The design of an hedging policy

  • The definition of the amount at risk
  • The definition of the hedging policy
  • The instruments used to hedge
Criteria for evaluation
Methods Lectures and case studies are included in the teaching process
Language English
Study material Main literature
1. How much can your company afford to lose?
2. The rise and evolution of che chief risk officer: enterprise risk management at hydro one, AAbo, Fraser, Simkins, Journal of applied corporate finance , 2005 vol.17 n.3
3. Options futures and other derivatives, eight edition, J. Hull , Prentice Hall , 2009
4. METALLGESELLSCHAFT REFINING AND MARKETING, INC, Noussan, G.; Rahnema, A., 1997,case study

Additional literature
5. Enterprise Risk Management: Today's Leading Research and Best Practices for Tomorrow's Executives, Fraser J. Simkins B, 2010.
6. Metallgesellschaft: A Prudent Hedger Ruined, or a Wildcatter on NYMEX? S. Pirrong, The Journal of Futures Markets, Vol. 17, No. 5, 543–578 , 1997.

Changing subject? No
Further information The lecture is held by Prof. Giovanna Zanotti from the University of Bergamo and is especially designed for the Troika student group.
On-site course
Maximum number of participants 40
Assignment procedure Assignment according to priority