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Risk Management in International Business

with the Jean Monnet module "A key to EU business success in global markets"


Aims of the course

- To develop students’ ability to identify, assess and manage the risks that are inherent in international business transactions.
- To reinforce students’ capacities of strategic analysis and application in an international context.
- To develop students’ general research ability and their practical skills needed for argumentation, discussion, presentation and negotiation.

Course syllabus

1. Global risk landscape
2. Country-specific risks in international business
- Specifics of international business environment, components of country-specific risk (economic, financial, currency, geo-political, social, environmental, and cross-cultural risk)
3. The nature and measures of risk
- defining the risk, diversification and risk, risk measures (mean-variance analysis, VaR, Capital asset pricing model, Alternatives to CAPM)
4. Economic and financial risk assessment
- Variables and ratios for economic and financial risk assessment, warning benchmarks for risk management
5. Socio- and geo-political risk analysis
- Methods and techniques of political risk assessment, macro and micro assessment, integration of risk estimates in the NPV concept (risk adjusted value, sensitivity analysis, simulations, stress tests)
6. Managing political, economic and financial risk
- Risk response strategies, internal and external hedging techniques, political risk insurance
7. Managing currency (foreign exchange) risk
- transaction, economic and translation exposure, financial derivatives
8. Supply chain risk management
- Types of supply chain risks, methodologies for SCRM, knowledge risk management in supply networks
9. Risk Management Systems and Strategy
- Management control systems, integrated approach to risk management (ERM), risk management system and corporate strategy

Course director(s)

  • Office Hours
  • Wednesday at 10:00 in R-306
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