Syllabus

Title
5256 ExInt II: International Risk and Financial Management (Group 2)
Instructors
Dr. Can Tihanyi, Assoz.Prof. PD Dr. Jakob Müllner
Contact details
jakob.muellner@wu.ac.at
Type
PI
Weekly hours
3
Language of instruction
Englisch
Registration
02/08/22 to 02/23/22
Registration via LPIS
Notes to the course
Subject(s) Master Programs
International Risk and Finance Management
Dates
Day Date Time Room
Monday 02/28/22 04:00 PM - 08:00 PM Online-Einheit
Thursday 03/10/22 11:00 AM - 02:30 PM Online-Einheit
Thursday 03/17/22 12:00 PM - 02:30 PM Online-Einheit
Thursday 03/31/22 01:00 PM - 05:00 PM Online-Einheit
Thursday 04/07/22 01:00 PM - 06:30 PM Online-Einheit
Tuesday 04/26/22 12:00 PM - 05:00 PM D3.0.233
Thursday 05/05/22 02:00 PM - 06:00 PM TC.0.01 ERSTE

On this page:

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Contents

•    International risk management and Reporting
o    Risk terminology, theory & measurement 
o    Risk management instruments 
o    Operative risk management 1 (foreign exchange risks)
o    Operative risk management 2 (interest rate risks, commodity risks, political risk)
o    Organization of risk management (agency theory, hedging practice)
o    Strategic risk management 2 (diversification, real options, project finance)

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Learning outcomes

•    Overview of tasks of risk managers in international companies
•    Overview of risk management mechanisms
•    Overview of risk management instruments 
•    Case studies
         -    Practical insights into day-to-day risk management
         -    Applying theoretical knowledge to real-life risk management
         -    Critically analysing corporate structures in risk management
•    Scientific presentation
         -    Knowledge of state-of-the-art empirical research on risk management
         -    Knowledge of empirical methods

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Attendance requirements

The course is designed as a distance course. The first part (basics) is hybrid combining asynchronous lecturecasts and synchronous online teaching. The second part (application) is synchronous virtual meetings in which students present scientifc research.

Students are not allowed to be absent more than 20% of the synchronous lecture time.

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Teaching/learning method(s)

Seminar in two parts:

•    Basics & theory
         o    Instructor lecture casts
         o    Student teaching case studies
         o    Exam
•    Application and research
         o    Case study discussions
         o    Competitive student presentations on scientific research readers

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Assessment
  1. Scientific presentation (small group)         50%
  2. Teaching case study essays (small group)  20% (see deadlines below)
  3. Exam (individual)                                       30% (see date below)
  4. Online wiki                                                 students receive extra points

 

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Prerequisites for participation and waiting lists

Entry Phase of the ExInt Master Programm
 

     

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    Recommended previous knowledge and skills

    Prior Knowledge and Courses:

     

    1. International Finance course recommended but not necessary
    2. Principles of Science course recommended but not necessary
    3. Data Analytics & Statistics recommended but not necessary
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    Availability of lecturer(s)

    Please use the learn@wu Forum for administrative communication!


    Dr. Jakob Müllner
    Institute for International Business (Building D1 3. floor)
    Department of Global Business and Trade
    Telephone: +43-1-313 36-4374
    E-Mail: jakob.muellner@wu.ac.at

    Can Tihanyi
    Institute for International Business (Building D1 5. Stock)
    Department of Global Business and Trade
    Telefon: +43-1-313 36-4326
    E-Mail: can.tihanyi@wu.ac.at
     

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    Other

    https://www.sciencedirect.com/science/article/pii/S104402831730443X

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    Additional (blank) field

    Attention: the selection of scientific articles for groups can vary from one semester to another and may change on short notice.

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    Unit details
    Unit Date Contents
    1 28.02.2022

    Introductory session 28.02.2022  16:00-20:00   (online synchronous) is shared between both courses 5253 & 5256  Instructor: Jakob Müllner
     
    Agenda Administrative issues, tasks and course design
    2

    Theory session 1  asynchronous lecture Cast  Instructor: Jakob Müllner
     
    Risk risk theory, risk measurement concepts, Risk measurement, Empirical evidence
    3 10.03.2022

    Case session 1  10.03.2022 13:00-18:30  online synchronous MS-Teams Instructor:   Jakob Müllner
     
    Lecturecast - Mangement & Organization Organizing risk management in companies
     

    Case 1: Zeidan, R. & Rodrigues, B. 2012. The failure of risk management for nonfinancial companies in the context of the financial crisis: lessons from Aracruz Celulose and hedging with derivatives. Applied Financial Economics, 23(3): 241-50.

     

    The case will be discussed in class. In addition, student groups have to write a case essay. The essay should relate to the case but more broadly address the organization of risk management in companies from

    · A theoretical point of view (theories)

    · Empirical point of view (academic research papers)

    · Practical point of view (examples from practice)

     

    The case essay should be max of 6 pages (single space, size 12, excluding graphs, references & cover page)

     

    The case essay must be uploaded by 28.03.2022 (23:59). Late submissions will receive a 40% grade penalty.
    4

    Theory session 2    asynchronous lecture Cast Instructor:   Jakob Müllner
     
    Lecturecast - Treasury

    Foreign exchange risk management I

    Interest rate risk management

    Commodity risk management
    5 17.03.2022

    Case session 2  17.03.2022  13:00-18:30  online synchronous MS-Teams
     
    Lecturecast - Interest rates & commodities Interest rate risk management Commodity risk management
     

    Case 2:

    Desai, M.A., Veblen, M. 2006. Foreign Exchange Hedging Strategies at General Motors: Competitive Exposures. Harvard Business School Case.

    Desai, M.A., Veblen, M. 2006. Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures. Harvard Business School Case.

     

    Students should read the case. In class, we will discuss the case and we will engage in a broader discussion on foreign exchange risk in the automotive industry. For this discussion, students are advised to conduct research ahead of the session.

     

    Further information will be provided on learn.

    There is no submission deadline since there is no written deliverable.
    6 31.03.2022

    Presentation session 1  31.03.2022 13:00-17:00  online  synchronous Instructor: Can Tihanyi
     

    Groups present in a competitive way.
     
    11:00  Group 1 - Bodnar, G. M., Giambona, E., Graham, J. R., & Harvey, C. R. v  2019. A View Inside Corporate Risk Management. Management Science, 65(11): 5001-26.

    12:00  Group 2 - Carter, D. A., Rogers, D. A., & Simkins, B. J. 2006. Hedging and Value in the U.S. Airline Industry. Journal of Applied Corporate Finance, 18(4): 21-33.

    13:00  Group 3 - Délèze, F. & Korkeamäki, T. 2018. Interest rate risk management with debt issues: Evidence from Europe. Journal of Financial Stability, 36: 1-11.

    14:00  Group 4 - Müllner, J. 2016. From uncertainty to risk—A risk management framework for market entry. Journal of World Business, 51(5): 800-14.
    7 07.04.2022

    Presentation session 2  07.04.2022 13:00-18:30  synchronous MS Teams Instructor:   Can Tihanyi
     

    Groups present in a competitive way.
     
    11:00  Group 5 - Kim, S. F. & Chance, D. M. 2018. An empirical analysis of corporate currency risk management policies and practices. Pacific-Basin Finance Journal, 47: 109-28.

    12:00  Group 6 - Zeidan, R. & Müllner, J. 2015. Firm, market and top management antecedents of speculation: Lessons for corporate governance. Journal of Multinational Financial Management, 32(December): 42–58.

    13:00  Group 7 - Servaes, H., Tamayo, A., & Tufano, P. 2009. The theory and practice of corporate risk management. Journal of applied corporate finance, 21(4): 60-78.

    14:00  Group 8 - Bartram, S. M. 2019. Corporate hedging and speculation with derivatives. Journal of Corporate Finance, 57: 9-34.
    8 26.04.2022

    Guest speaker 26.04.2022 12:00-17:00   D3.0.233 Instructor: Jakob Müllner &  Can Tihanyi
     
    Guest speaker - OeKB Austrian export credit agency
    9 05.05.2022

    Final Exam   05.05.2022  14:00-18:00  TC.0.01 ERSTE Hörsaal   Instructors: Can Tihanyi
     
     
    Exam will include open and multiple choice questions. Students have 60 minutes to answer questions.
    Last edited: 2022-02-28



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