The course introduces the theoretical and empirical concepts of modern finance that are relevant for risk management (RM). The course seeks to deepen the understanding of why risk management is beneficial by applying classic decision theory to investment and risk management problems. The course is also concerned with market risk, covering different measures of risk and return, as well as portfolio theory and common asset pricing techniques. Furthermore, concepts and instruments like derivative securities, hedging, and insurance are discussed.


Die Studierenden sollen ein Grundverständnis in den Bereichen Investitionsentscheidungen von Unternehmen, Finanzierungsentscheidungen von Unternehmen sowie Kapitalmärkte erlangen. Sie sollen die wichtigsten Fragestellungen, Methoden und Theorien im Bereich Corporate Finance und Kapitalmärkte kennenlernen, einordnen und sie auch anwenden können. Die Vorlesung soll einen Überblick geben und Interesse an diesem Themengebiet wecken.

Die Veranstaltung richtet sich an Studierende im Grundstudium. Am tbd findet voraussichtlich eine digitale Take-Home Open-Book Prüfung statt (Sobald der ISC Masterklausurenplan vorliegt, werden wir das voraussichtliche Klausurdatum hier ergänzen). Für die Teilnahme an der Prüfung ist eine Anmeldung via LSF zwingend erforderlich. Aktuelles zu Klausurterminen sowie zur Klausuranmeldung entnehmen Sie bitte den Seiten des ISC.

Vorlesung (Prof. Richter):

  • Umfassende On-Demand Videos auf LMUcast (von Prof. Richter und Prof. Glaser)

  • Zudem wird zweiwöchentlich ein Livetermin zur Vertiefung und Wiederholung der Vorlesungsinhalte im Hörsaal/auf Zoom stattfinden. Die genauen Inhalte wie Termine der Livetermine entnehmen Sie bitte dem "Syllabus" Dokument.

Übung:

  • Sie finden als On-Demand Videos die Lösungen aller Übungsblätter
  • Ab der 2. Vorlesungswoche finden wöchentlich 16 inhaltsgleiche Live-Übungsvertiefungen im Hörsaal/auf Zoom statt.
  • In diesen Vertiefungen werden wir Fragen zu den Übungsblättern beantworten und die schwierigsten Aufgaben nochmals live lösen. Dafür stimmen Sie bitte bis Donnerstag um 12 Uhr mittags vor der jeweiligen Woche im Moodleabschnitt "Übung" über die für Sie am schwierigsten empfundenen Aufgaben ab.

Wir stellen Ihnen Vorlesungsunterlagen und Aufgabenblätter auf Moodle bereit. Fragen zu den Aufgaben können über die Moodle-Plattform, am besten im jeweiligen Fragenbereich der Vorlesung oder Übung, gestellt werden.

Wichtig: Bitte entnehmen Sie weitere Informationen zu dieser Veranstaltung aus dem Dokument "Organisation", welches unter dem Punkt "Vorlesungsunterlagen" zu finden ist.


This course provides an introduction of the economic foundations of the insurance business. Managerial questions along the value chain of insurance providers will be analyzed. Current developments will be explained and economic interrelation will be discussed. Among the topics to consider are institutional foundations, insurance regulation, insurance distribution as well as current issues like the digital transformation of the insurance sector and the handling of cyber risks.

 

Main Objectives

  • Getting to know the central institutional characteristics of the insurance sector and their impli-cations for its management.
  • Become familiar with the regulatory framework of the insurance business.
  • Be aware of key developments and challenges arising from new technologies and risks and their economic significance for the industry.

Although the benefits of insurance may be obvious to the policyholder when the earth shakes or the wind blows, how insurance companies and banks create value for shareholders is oftentimes less transparent. Similar to an industrial corporation, banks and insurers need to focus on securing profitable growth opportunities and achieving cost efficiency. However, financial institutions are different from industrial corporations in three important ways: the products we sell involve risk, implying that our “cost of goods sold” only becomes clear over time; we create value for shareholders and our customers by underwriting and managing that risk; and, finally, the risk, as well as regulatory and rating agency considerations, play a key role in defining our capital structure. These differences make financial institutions inherently more complex, a situation that is not helped by traditional accounting rules.

This course focuses on how to manage financial institutions for value with a deeper focus on insurance. During the course of the seminar, a valuation framework including key value drivers will be developed for insurance and banking businesses. In addition, generic management actions or “rules of the game” will be developed for creating value through profitable growth, cost efficiency, underwriting excellence, and capital efficiency. In this context, the role of balance sheet management, risk management, and strategic planning will be discussed.

In the middle of the Semester, seminar participants will be asked to present an outside-in valuation of an actual insurance company based on public information. At the end of the Semester, seminar participants will be asked to present a strategic plan to “management” on how the company can increase its value. Both presentations will be made to industry executives who will evaluate the conclusions and provide feedback.

(Picture source: ar130405Pixabay)

Description

This course provides an introduction of the economic foundations of the insurance business. Managerial questions along the value chain of insurance providers will be analyzed. Current developments will be explained and economic interrelation will be discussed. Among the topics to consider are institutional foundations, insurance regulation, insurance distribution as well as current issues like the digital transformation of the insurance sector and the handling of cyber risks.

 

Main Objectives

  • Getting to know the central institutional characteristics of the insurance sector and their impli-cations for its management.
  • Become familiar with the regulatory framework of the insurance business.
  • Be aware of key developments and challenges arising from new technologies and risks and their economic significance for the industry.

 

Course Outline

Module I:Insurance Industry Foundations
Module II:Insurance Regulation & Supervision
Module III:Insurance Distribution
Module IV:Insurance Products & Marketing
Module V:Current Challenges: Digitalization & Cyber Risks

 

Timeline

Detailed information on the timeline of the lecture can be found in the syllabus.