MØLBA3009 Financial Risk Management
- Course codeMØLBA3009
- Number of credits7,5
- Teaching semester2026 Autumn
- Language of instruction and examinationEnglish
- CampusLillehammer
This course offers a comprehensive introduction to the principles, tools, and practices of risk management within financial institutions. Students will learn how to identify, assess, and manage key risk types - including market, credit, liquidity, operational, model, cyber, and climate risks - within both regulatory and enterprise contexts. The course places strong emphasis on the Basel III/IV framworks, stress testing, financial derivatives, and recent developments in risk management, including ESG and climate-related financial risks.
The course content is structured around the following key topics:
- Introduction to Financial Risk Management and Financial Institutions
- Financial Instruments and Markets
- Market Risk & Credit Risk
- Operational, Liquidity, Model, Climate & Enterprise Risk Management (ERM)
- Regulation, Innovation, and Risk Management Failures
Learning outcome
Upon completion of the course, the candidate shall be able to:
- Identify and classify major types of risk faced by financial institutions.
- Understand the Basel regulatory framework and the structure of regulatory capital.
- Explain the principles, tools, and practices of risk management within financial institutions.
- Describe recent developments in risk management, including ESG and climate-related financial risks.
- Recognize real-world failures in risk management.
- Measure and manage market, credit, liquidity, operational, model, and emerging risks.
- Apply quantitative tools such as VaR, Expected Shortfall, copulas, credit risk models, and stress testing.
- Evaluate the use of financial derivatives for hedging and managing risk.
- Propose preventative strategies for risk management failures.
- Utilize real-world datasets and R/Python/Excel applications for risk analysis.
- Assess how to identify, assess, and manage key risk types within both regulatory and enterprise contexts.
- Analyze and interpret complex financial risk scenarios.
- Develop a comprehensive understanding of financial risk management in a practical setting.
The following teaching methods are used:
- Lectures
- Group exercises and discussions
- Exercises and simulations
- Applied tasks
- Case work
- Integrative cases
- Self-study
- Attendance on at least 50% of the courses lectured teaching.
- Mandatory homework assignments must be handed in before each teaching module. These will be combinations of practical and theoretical exercises covering key topics in the course. The first and the fourth homework sets are to be completed individually by a student. The second and the third homework sets are to be completed in groups. A student must pass at least three of the four homework sets.
| Form of assessment | Grading scale | Grouping | Duration of assessment | Support materials | Proportion | Comments |
|---|---|---|---|---|---|---|
Written examination with supervision | ECTS - A-F | Individual | 4 Hour(s) | 100 | All resources (including the use of Excel, Phyton and R and general resources available online) |
Four-hour individual digital exam under attendance involving elements from all modules of the course. Graded A-F, where E is minimum for passing the exam.