Course Information
SemesterCourse Unit CodeCourse Unit TitleT+P+LCreditNumber of ECTS CreditsLast Updated Date
-1ITF471Financial Risk Management3+0+03626.04.2026

 
Course Details
Language of Instruction English
Level of Course Unit Bachelor's Degree
Department / Program International Trade and Finance (Eng)
Type of Program Formal Education
Type of Course Unit Elective
Course Delivery Method Face To Face
Objectives of the Course The aim of a financial risk management course is to teach the methods of managing and controlling risks associated with investments or other financial activities.
Course Content This course covers derivative products such as Future, Forward, Swap and Options and other risk management techniques used to measure and reduce financial risk.
Course Methods and Techniques Lecture, Discussion, Question and Answer, Problem Solving
Prerequisites and co-requisities None
Course Coordinator None
Name of Lecturers Asist Prof. Fatma Dural fatma.dural@gedik.edu.tr
Assistants None
Work Placement(s) No

Recommended or Required Reading
Resources Options, Futures, and Other Derivatives John Hull ISBN:9780134472089, 013447208X
Brealey, R. A., Mayers, S. C., & Allen, F. (2011). Corporate Finance
Course Notes Hull, J. C. (2021). Options, futures, and other derivatives (11th ed.). Pearson.
Essentials of Financial Risk Management by Karen A. Horcher (Author)
Brealey, R. A., Mayers, S. C., & Allen, F. (2011). Corporate Finance.
Documents Options, Futures, and Other Derivatives John Hull ISBN:9780134472089, 013447208X

Course Category
Mathematics and Basic Sciences %40
Field %60

Planned Learning Activities and Teaching Methods
Activities are given in detail in the section of "Assessment Methods and Criteria" and "Workload Calculation"

Assessment Methods and Criteria
In-Term Studies Quantity Percentage
Mid-terms 1 % 30
Quizzes 2 % 20
Final examination 1 % 50
Total
4
% 100

 
ECTS Allocated Based on Student Workload
Activities Quantity Duration Total Work Load
Course Duration 14 3 42
Hours for off-the-c.r.stud 14 3 42
Mid-terms 1 20 20
Practice 2 15 30
Final examination 1 20 20
Total Work Load   Number of ECTS Credits 6 154

 
Course Learning Outcomes: Upon the successful completion of this course, students will be able to:
NoLearning Outcomes
1 Analyze the risk-return relationship.
2 Compare different types of risks.
3 Can apply different risk measurement methods.
4 Solve problems by applying financial risk methods in real-world case studies.
5 Integrate financial risk management processes with basic financial management principles.

 
Weekly Detailed Course Contents
WeekTopicsStudy MaterialsMaterials
1 Foundations of Risk Management: Definition of risk and risk management Hull, J. C. (2021). Chapter 1: Introduction
2 Types of risk : Market risk,Credit risk, Foreign Exchange risk, interest rate risk and its sources Hull, J. C. (2021). Chapter 1 & 2
3 The Investment Settings:The Rate Of Return On An Investment (Single Period Return, Nominal-real return) Reading: Hull, Ch. 4 (Interest Rates and Returns) Hull, J. C. (2021). Chapter 4
4 Multi-Period return and Annualized return Practice: Compound return exercises Hull, J. C. (2021). Chapter 4
5 Modern Portfolio Theory and Diversification Question: How to minimize portfolio risk? Brealey, R. A., Mayers, S. C., & Allen, F. (2011). Corporate Finance,“Portfolio Theory and the Capital Asset Model Pricing”, Chapter 8, (Pages: 185-195)
6 Measuring Portfolio Risk and Return Reading: Hull, Ch. 23 (Estimating Volatilities and Correlations) Hull, J. C. (2021). Chapter 23
7 Financial Risk Management Strategies (Risk Avoidance and Reduction and Transfer) OHull, J. C. (2021). Chapter 3
8 Financial Risk Management Strategies (Continue) Hull, J. C. (2021). Chapter 3
9 Forward Case Reading: How global firms like Starbucks and Lufthansa use Forward Contracts to hedge commodity price risks. Hull, J. C. (2021). Chapter 2
10 Future Hull, J. C. (2021). Ch. 2
11 Swap Case Reading: Managing Currency Risk in Turkish Corporates: A Case Study on Currency Swaps Hull, J. C. (2021). Ch. 7
12 Problem Solving (Forward-Future-Swap) Hull, J. C. (2021). Practice Questions
13 Options Hull, J. C. (2021). Ch. 10 & 11
14 General Review and Practice Available at ue.gedik.edu.tr

 
Contribution of Learning Outcomes to Programme Outcomes
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12
All 5 4 4 4 3 2 2 1 2 2 1 1
C1 5 4 3 3 2 2 2 1 2 2 1 1
C2 5 3 3 4 2 2 2 1 2 2 1 1
C3 5 4 4 4 3 2 2 1 2 2 1 1
C4 5 5 4 4 3 2 2 1 2 3 1 1
C5 5 5 4 5 3 2 2 1 2 3 1 1

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