ITF 403 | Course Introduction and Application Information - Department of Mathematics

Course Name

Financial Risk Management

Code	Semester	Theory (hour/week)	Application/Lab (hour/week)	Local Credits	ECTS
ITF 403	Fall/Spring	3	0	3	6

Prerequisites	None
Course Language	English
Course Type	Elective
Course Level	First Cycle
Mode of Delivery	-
Teaching Methods and Techniques of the Course	Problem Solving Q&A Lecture / Presentation
National Occupation Classification	-
Course Coordinator	Prof. Dr. C Coşkun KÜÇÜKÖZMEN
Course Lecturer(s)	Prof. Dr. YENER COŞKUN
Assistant(s)	Arş.Gör. MERT SAĞSÖZ

Course Objectives	The main goal of this class is to introduce the tools/techniques of financial risk management as well as its fundamental concepts. The emphasis will be on derivatives and hedging techniques. Detailed information on the enterprise risk management process will be discussed.
Learning Outcomes	The students who succeeded in this course; Define risk and key related concepts. Explain the purpose and scope of enterprise risk management (ERM). Distinguish among financial and non-financial types of risks. Identify the role of management and governance in risk oversight. Apply different hedging techniques and instruments. Evaluate the relationship between corporate governance, internal controls, and risk management.
Course Description	This course covers, the evolution of risk management, enterprise risk management approach, fundamental concepts of risk management, goals and strategies in risk management, design and application of risk management systems.
Related Sustainable Development Goals

Course Category	Core Courses
	Major Area Courses
	Supportive Courses	X
	Media and Management Skills Courses
	Transferable Skill Courses

Week	Subjects	Related Preparation
1	Course Introduction, Overview, and Methodology
2	Introduction to financial and non-financial risks	Hull (2010)-Chapter 1
3	Firm Value, Corporate Governance and Risk Management	Farooq, M., Khan, I., Kainat, M., & Mumtaz, A. (2025). Corporate social responsibility and firm value: the role of enterprise risk management and corporate governance. Corporate Governance: The International Journal of Business in Society, 25(3), 631-663. Balachandran, B., & Faff, R. (2015). Corporate governance, firm value and risk: Past, present, and future. Pacific-Basin Finance Journal, 35, 1-12.
4	Financial Products: Equity, fixed income, collective investment, innovative products and derivatives	Hull (2010)-Chapter 5
5	Financial Risks: Market, credit, operational, liquidity and derivative risks	Hull (2010)-Chapter 12-14-18
6	Non-Financial Risks: Environmental, Social, and Governance (ESG) Risks	Wong, A. (2014). Corporate sustainability through non-financial risk management. Corporate Governance, 14(4), 575-586. Cicchiello, A. F., Marrazza, F., & Perdichizzi, S. (2023). Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms. Corporate Social Responsibility and Environmental Management, 30(3), 1121-1128. **Wong, A. (2014). Corporate sustainability through non-financial risk management. Corporate Governance, 14(4), 575-586.
7	Risk Management Culture and Ethics	Demidenko, E., & McNutt, P. (2010). The ethics of enterprise risk management as a key component of corporate governance. International Journal of Social Economics, 37(10), 802-815. Asher, A., & Wilcox, T. (2022). Virtue and risk culture in finance. Journal of Business Ethics, 179(1), 223-236.
8	Risk Management Fundamentals: risk measurement, reporting and mitigation	Hull (2010)-Chapter 15
9	Midterm Exam
10	Risk Governance and Management Frameworks: Enterprise Risk Management (ERM)	Chairani, C., & Siregar, S. V. (2021). The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance. Meditari Accountancy Research, 29(3), 647-670. Shah, S. Q. A., Lai, F. W., Shad, M. K., Hamad, S., & Ellili, N. O. D. (2025). Exploring the effect of enterprise risk management for ESG risks towards green growth. International Journal of Productivity and Performance Management, 74(1), 224-249.
11	Case Studies in Financial Risk Management	Hull (2010)-Chapter 16 Stulz, R. M. (2024). Risk, the limits of financial risk management, and corporate resilience. Annual Review of Financial Economics, 17. Alzayed, N., Eskandari, R., Eshraghi, A., & Yazdifar, H. (2024). Revisiting corporate governance and financial risk‐taking. International Journal of Finance & Economics, 29(4), 4787-4812.
12	Case Studies in ESG Risk Management	**Zioło, M., Bąk, I., & Spoz, A. (2023). Incorporating ESG risk in companies’ business models: State of research and energy sector case studies. Energies, 16(4), 1809
13	Presentations: Case Studies in (Un)Succesful (Non-) Financial Risk Management	**Fadun, O. S. (2013). Risk management and risk management failure: Lessons for business enterprises. International Journal of Academic Research in Business and Social Sciences, 3(2), 225-239.
14	Presentations: Case Studies in (Un)Succesful (Non-) Financial Risk Management	**Sharma, S. (2023). Does ESG risk management ensure better risk management? Evidence from India. Procedia Computer Science, 221, 912-919.
15	Review of the Semester
16	Final Exam

Course Notes/Textbooks

Book: Hull, J. C. (2010). Risk Management and Financial Institutions (2nd ed.). Wiley.

Suggested Readings/Materials

All announcements, results and materials will be available on the Blackboard site of the course.

**Farooq, M., Khan, I., Kainat, M., & Mumtaz, A. (2025). Corporate social responsibility and firm value: the role of enterprise risk management and corporate governance. Corporate Governance: The International Journal of Business in Society, 25(3), 631-663.

**Balachandran, B., & Faff, R. (2015). Corporate governance, firm value and risk: Past, present, and future. Pacific-Basin Finance Journal, 35, 1-12.

**Cicchiello, A. F., Marrazza, F., & Perdichizzi, S. (2023). Non‐financial disclosure regulation and environmental, social, and governance (ESG) performance: The case of EU and US firms. Corporate Social Responsibility and Environmental Management, 30(3), 1121-1128.

**Wong, A. (2014). Corporate sustainability through non-financial risk management. Corporate Governance, 14(4), 575-586.

**Demidenko, E., & McNutt, P. (2010). The ethics of enterprise risk management as a key component of corporate governance. International Journal of Social Economics, 37(10), 802-815.

**Asher, A., & Wilcox, T. (2022). Virtue and risk culture in finance. Journal of Business Ethics, 179(1), 223-236.

**Chairani, C., & Siregar, S. V. (2021). The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance. Meditari Accountancy Research, 29(3), 647-670.

**Shah, S. Q. A., Lai, F. W., Shad, M. K., Hamad, S., & Ellili, N. O. D. (2025). Exploring the effect of enterprise risk management for ESG risks towards green growth. International Journal of Productivity and Performance Management, 74(1), 224-249.

**Stulz, R. M. (2024). Risk, the limits of financial risk management, and corporate resilience. Annual Review of Financial Economics, 17.

**Alzayed, N., Eskandari, R., Eshraghi, A., & Yazdifar, H. (2024). Revisiting corporate governance and financial risk‐taking. International Journal of Finance & Economics, 29(4), 4787-4812.

**Zioło, M., Bąk, I., & Spoz, A. (2023). Incorporating ESG risk in companies’ business models: State of research and energy sector case studies. Energies, 16(4), 1809.

**Fadun, O. S. (2013). Risk management and risk management failure: Lessons for business enterprises. International Journal of Academic Research in Business and Social Sciences, 3(2), 225-239.

**Sharma, S. (2023). Does ESG risk management ensure better risk management? Evidence from India. Procedia Computer Science, 221, 912-919.

Semester Activities	Number	Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury	1	30
Project
Seminar / Workshop
Oral Exams
Midterm	1	30
Final Exam	1	40
Total

Weighting of Semester Activities on the Final Grade	2	60
Weighting of End-of-Semester Activities on the Final Grade	1	40
Total

Semester Activities	Number	Duration (Hours)	Workload
Theoretical Course Hours (Including exam week: 16 x total hours)	16	3	48
Laboratory / Application Hours (Including exam week: '.16.' x total hours)	16		0
Study Hours Out of Class	16	2.5	40
Field Work			0
Quizzes / Studio Critiques			0
Portfolio			0
Homework / Assignments			0
Presentation / Jury	1	25	25
Project			0
Seminar / Workshop			0
Oral Exam			0
Midterms	1	25	25
Final Exam	1	30	30
		Total	168

#	Program Competencies/Outcomes	* Contribution Level
#	Program Competencies/Outcomes	1	2	3	4	5
1	To be able to have a grasp of basic mathematics, applied mathematics or theories and applications of statistics.	-	-	-	-	-
2	To be able to use advanced theoretical and applied knowledge, interpret and evaluate data, define and analyze problems, develop solutions based on research and proofs by using acquired advanced knowledge and skills within the fields of mathematics or statistics.	-	-	-	X	-
3	To be able to apply mathematics or statistics in real life phenomena with interdisciplinary approach and discover their potentials.	-	-	-	-	-
4	To be able to evaluate the knowledge and skills acquired at an advanced level in the field with a critical approach and develop positive attitude towards lifelong learning.	-	-	-	-	X
5	To be able to share the ideas and solution proposals to problems on issues in the field with professionals, non-professionals.	-	-	-	-	X
6	To be able to take responsibility both as a team member or individual in order to solve unexpected complex problems faced within the implementations in the field, planning and managing activities towards the development of subordinates in the framework of a project.	-	-	-	-	-
7	To be able to use informatics and communication technologies with at least a minimum level of European Computer Driving License Advanced Level software knowledge.	-	-	X	-	-
8	To be able to act in accordance with social, scientific, cultural and ethical values on the stages of gathering, implementation and release of the results of data related to the field.	-	-	-	-	-
9	To be able to possess sufficient consciousness about the issues of universality of social rights, social justice, quality, cultural values and also environmental protection, worker's health and security.	-	-	-	-	-
10	To be able to connect concrete events and transfer solutions, collect data, analyze and interpret results using scientific methods and having a way of abstract thinking.	-	-	-	-	-
11	To be able to collect data in the areas of Mathematics or Statistics and communicate with colleagues in a foreign language.	-	-	-	-	-
12	To be able to speak a second foreign language at a medium level of fluency efficiently.	-	-	-	-	-
13	To be able to relate the knowledge accumulated throughout the human history to their field of expertise.	-	-	-	-	-