FOUNDATIONS TO RISK MANAGEMENT - BMEGT35M101

Business decisions are based on significant business uncertainty and risk. The aim of teaching the subject is that students get to know the basic concept of risk management. What types of risks do companies and financial instituti-ons face. Risk management, and more broadly, how responsible corporate governance can effectively manage these, thereby increasing the value of the organization. Students will get an idea of the basic methods and best practices of risk management, with emphasis on value at risk; expected shortfall; stress test and scenario analysis. Market risks are presented through option and bond pricing models (what risks these financial instruments are sensitive to). We describe the credit risk and its two components: expected and unexpected loss. We also cover operational and sovere-ign risks. In developing the topic, we made great efforts to cover the first and fourth topics of the international FRM (Financial Risk Manager) exam (Foundations of Risk Management; Valuation and Risk Models). In the course of education, we keep in mind the objective that, as a result of the learning process, the student should be able to apply the acquired theory in practice.

1. the different types of risk;
2. basic risk management methods;
3. modern corporate governance systems, in which the risk management function also plays a role;
4. risk mitigation techniques.

1. plan and organize independent learning,
2. comprehend and use the professional literature of the topic,
3. to identify and measure corporate / banking risk,
4. perform calculations to support decision making

1. is open to learn about and adapt innovations in finance,
2. collaborates with their instructors and peers during the learning process,
3. gains knowledge and information,
4. makes use of ICT tools.

1. is open to accept reliable critical remarks,
2. collaborates with other students in performing assignments during the learning process,
3. is capable of making informed jusgements in the financial (risk) decision-making,
4. can weigh the significance of their responsibilities and foresee the consequences of their decisions.

Lectures, verbal and written communication, use of ICT tools and techniques, optionally independent and group assignments.

• Az előadások prezentációinak anyaga, ami a félév során folyamatosan fog feltöltésre kerülni.
• Lecture slides which will be uploaded continously during the semester.
• Az aktuális irodalmi lista az első órán kerül ismertetésre.
• The actual bibliography will be presented in the first hour

Assessment of the learning outcomes described under 2.2. is based on the end-term exam. The optional homework can affect the outcome.

A. Detailed description of mid-term per-formance assessments The audience could gain extra points with the optional homework. Presence on at least 70% of the lectures is required to being allowed to take the exam. B. Detailed description of examination performance as-sessments There will be a written exam in the examination period. The part of the curriculum on which the assessment is based is determined by the lecturer of the subject. The time available for the exam will be announced during the semester.

• optional homework:

• Exam in the exam period:

Attendance at lectures is a condition for obtaining a signature. The condition for writing the exam is to obtain a sig-nature. The obtained signature is valid for the period according to the TVSZ.

Grade improvment and retakes by TVSZ.

Consulted with the Faculty Student Representative Committee, approved by the Vice Dean for Education, valid from: 09.10.2023.

Subject includes the topics detailed in the course syllabus to ensure learning outcomes listed under 2.2. can be achieved. Timing of the topics will be arranged by the calendar or other circumstances in each semester.