Information Package / Course Catalogue
Financial Risk Management
Course Code: UTIF313
Course Type: Area Elective
Couse Group: First Cycle (Bachelor's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 4
Objectives of the Course

The aim of this course is to enable students to recognize the main types of risks encountered in the financial system, understand how to measure and manage these risks, adopt the enterprise-wide risk management approach, and learn how to manage risks using various tools, especially derivatives.

Course Content

This course begins with an introduction to the major types of risks encountered in the financial system, including currency risk, interest rate risk, credit risk, liquidity risk, and operational risk. It explores contemporary techniques used in risk measurement such as Value at Risk (VaR), stress testing, and volatility analysis. The COSO framework for enterprise risk management is presented, along with a detailed examination of risk regulation practices in the banking sector under Basel Accords. The course also covers the use of derivative instruments—such as forwards, futures, options, and swaps—for hedging purposes. Real-world case studies from both the financial and real sectors are included to support practical understanding. By the end of the course, students will be able to formulate risk management strategies at the enterprise level.

Name of Lecturer(s)
Learning Outcomes
1.Classifies and defines financial risk types.
2.Applies risk measurement techniques (VaR, volatility, stress testing, etc.).
3.Explains Basel regulations and enterprise risk management principles.
4.Analyzes the use of derivatives in risk management.
5.Develops hedging strategies against market risks such as exchange rate and interest rate risks.
Recommended or Required Reading
1.Hull, J. C. (2021). Risk Management and Financial Institutions (5th Ed.), Wiley.
2.Bessis, J. (2015). Risk Management in Banking (4th Ed.), Wiley.
3.Akkaya, M. (2022). Risk ve Risk Yönetimi, Ekin Yayınevi.
4.Financial Risk Management Prof. Dr. Burak Saltoğlu
Weekly Detailed Course Contents
Week 1 - Theoretical
Concept of Risk, Types of Risks and Importance of Risk Management
Week 2 - Theoretical
Enterprise Risk Management and Risk Culture
Week 3 - Theoretical
Exchange Rate Risk and Interest Rate Risk – Measurement and Management Techniques
Week 4 - Theoretical
Liquidity Risk and Credit Risk – Key Dynamics and Risk Models
Week 5 - Theoretical
Volatility and Stress Testing Applications
Week 6 - Theoretical
Value at Risk (VaR), Expected Shortfall and Other Risk Metrics
Week 7 - Theoretical
Causes and Effects of Banking Crises
Week 8 - Theoretical
Basel I, Basel II, Basel III and Risk Regulations in Banking
Week 9 - Theoretical
Financial Stability, Systemic Risk and Macroprudential Policies
Week 10 - Theoretical
Introduction to Derivatives and Basic Hedging Strategies
Week 11 - Theoretical
Futures, Forwards, Options and Swaps
Week 12 - Theoretical
Risk Management in the Real Sector and Its Applications
Week 13 - Theoretical
Insurance, Factoring, Forfaiting and Alternative Risk Transfer Methods
Week 14 - Theoretical
Developing Enterprise Risk Strategy – Case Study
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory141356
Midterm Examination120121
Final Examination125126
TOTAL WORKLOAD (hours)103
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
PÇ-10
PÇ-11
PÇ-12
OÇ-1
2
3
4
5
5
4
4
5
4
4
3
4
OÇ-2
4
4
4
4
4
4
4
3
3
2
2
5
OÇ-3
2
3
3
5
5
5
5
4
3
4
3
5
OÇ-4
4
4
4
4
4
4
3
4
5
4
2
5
OÇ-5
5
5
4
5
4
5
4
4
5
4
3
5
Adnan Menderes University - Information Package / Course Catalogue
2026