The majority of business decisions are made under risk. Therefore a formal definition of risk is essential to enable processes of risk measurement and risk management.

The course Decision Theory and Risk Management covers the implementation of risk and risk aversion within the framework of the classical Von Neumann-Morgenstern utility theory as well as the definition of risk measures in an axiomatic way.

Furthermore the essentials of risk management with focus on market, credit and operational risk are taught. In varying degrees all companies are exposed to these risk categories. Banking and insurance companies are even obliged to risk management according to Basel and Solvency directives.

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