Introduction
Please note that this is a preliminary course description. The final version will be published in June 2026.
This course provides an introduction to derivatives and risk management with a focus on applications to financial firms and corporations. The remarkable growth in the use of financial derivative instruments for risk management, combined with their increasing complexity and the evolving risk landscape, makes a thorough understanding of risk management essential for students and professionals in finance and business.
The course examines how risk management can create value and sustainable institutions, the types of risks commonly faced by institutions, and the tools available to measure and manage them. Students will gain both theoretical knowledge and practical skills through exposure to real-world cases, simulation exercises, and digital tools. Special attention is given to the valuation of derivatives, modeling of risks under uncertainty, and the implications of past financial crises and regulatory responses. The course also addresses how changing environmental and economic conditions, including climate-related risks, can impact financial stability and risk exposure.
The course balances conceptual understanding with analytical applications, allowing students to develop sound judgment in applying risk management practices to dynamic and complex environments.