Financial and Shipping Risk Management

Learning Outcomes

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• Effectively communicate complex risk management strategies and financial analyses in both written and oral formats.

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• Evaluate the effectiveness of risk management strategies in using case studies of shipping market scenarios.
• Assess the interplay between financial strategies and operational policies in the management of shipping companies.
• Develop and implement comprehensive risk management solutions tailored to specific situations in the shipping industry.
• Critically analyse the impact of market conditions on shipping operations and employ derivatives to hedge against potential risks.

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• Key principles and practices of risk management specific to the shipping industry.
• The functionality and application of various financial derivatives including forwards, futures, options, and swaps within the context of shipping.
• Effective strategies and techniques for managing significant financial risks such as freight rate risk, bunker price risk, and ship price volatility.

The indicative syllabus of this module covers:

Introduction to the Shipping Industry

Principles of Risk Management

Shipping Markets and Economics

Financial Derivatives in Shipping

Freight Rate Risk Management

Bunker Price Risk Management

Credit Risk Management

Interest Rate Risk Management

Statistical Tools for Risk Analysis

Real Options in Shipping

Weekly lectures will cover the key topics of this module, supplemented by numerical and theoretical exercises. These exercises will enhance your learning by offering opportunities to practice numerical and problem-solving tasks and receive feedback. Additionally, you will have opportunities for both guided and independent reading.

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.