Bank Management

In this course students are equipped with a structural understanding of financial reports. The focus is set on the relative analysis of corporate performance and value, based on publicly availble accounting information and comparables. A distinction is made between the financial sector and other industries.

The core contents of the course include:

[1] Analysis of financial reports; qualitative business analysis

[2] Comparability of financial reports

[3] EBITDA

[4] Key indicators for non-financial companies

[5] Key indicators for financial companies

[6] Case study: comparative business analysis.

Optional contents include:

[7] Valuation by multiples

[8] DCF valuation.

This course may be taught in English.

This course offers a detailed discussion of results of classical portfolio theory and their extensions. Risk and performance measures are discussed, as well as investment and long-term saving decision-making.

The core contents of this course include:

[1] Decision making under uncertainty; utility theory

[2] Markowitz portfolio theory

[3] CAPM and its extensions

[4] Risk-adjusted performance measures

[5] Passive vs. active portfolio management: index tracking, constant mix, CPP

[6] Life cycle investment theory.

Optional contents can include:

[6] Stochastic dependence and portfolio optimisation; correlation vs. dependence; copulas.

This course may be taught in English.

This course offers an introduction to leadership within corporations and business models. Methods to evaluate existing business models are discussed, as well as structured approaches to business innovation. Case studies illustrate methods of finding innovative solutions and the design of business plans.

The core contents of this course include:

[1] Methods of strategic management: definition of visions, missions and goals, SWOT analysis etc.

[2] Analysis of demand/supply, business environment and trends;

[3] Entrepreneurship as a process: idea generation, evaluation, implementation;

[4] Creative generation and evaluation of ideas; methods of structuring and evaluating ideas in the business context;

[5] Innovation management in corporations;

[6] Design and evaluation of business plans;

[7] Diversified businesses: evaluation of pros/cons and synergies;

Optional contents can contain:

[8] Opportunities of and limits to corporate growth; …

The course aims to provide an understanding of sustainable innovation processes that goes beyond individual product, service or process innovations.

The core contents include:

[1] Dimensions of the concept of innovation and basics of innovation management

[2] Transition management and innovation systems

[3] Sustainable Innovation

[4] Open Innovation

[5] Control of innovations

[6] Corporate culture vs. innovation culture

[7] Potential resistance to innovation

[8] Innovations as a management task

Building on the previous courses of this module, this course discusses the role of information and data management in banking/insurance. A focus is hereby set on administration, data protection and IT requirements. It is a particular feature of the banking/insurance sector that structured data management and analysis is fundamental to designing and pricing products, and selecting appropriate distribution channels.

The core contents of this course include:

[1] Overview of information and data management

[2] Administrative and strategic tasks in information management

[3] Methods of strategic information management

[4] Data protection

[5] Information management in banking/insurance

[6] Current developments in banking/insurance IT solutions

[7] Data analysis for product design and pricing.

Optional contents can include:

[8] SAP applied in banking/insurance

[9] Basics of data base design.

This course introduces process-oriented thinking during business routines, and focuses on process classes specific to the bank and insurance industry. Quality management and optimisation of processes are a key topic.

The core contents of this course include:

[1] Definition and role of business processes

[2] Process-oriented thinking; modelling of processes; process landscape

[3] Documentation of business processes; importance of knowledge management within a corporation

[4] Typical business processes in banking

[5] Typical business processes in insurance

[6] Internal quality management in banking/insurance; competitive advantage through QM

[7] Six Sigma system

[8] Methods for the digitization of business processes

This courses focuses on risk management in banks. Some emphasis is put on Credit as a bank's core business area. Regulatory and economic requirements on a bank's risk management system are discussed, and particular attention is given to the regulatory systems in Austria/Europe (e.g. Basel II/III). After an introductory part, students complete a case study including the building of a bank's risk model. This modelling exercise shall deepen their understanding of the effects of the various risk types.

The core contents of this course include:

[1] Sources of risk in banking

[2] Reporting and regulatory requirements

[3] Measuring risk: RWA, expected loss, unexpected loss, VaR, ES, model risk, etc.

[4] Economic and regulatory capital (incl. Basel II/III), standard vs. internal model, cost of risk, cost of capital

[5] Managing the credit portfolio (quality requirements, limit system, standard approach/IRBA, capital allocation)

[6] Management of interest rate risk; …

This course discusses various aspects of the treasury and liquidity management in banks. Particular attention is given to risk assessment, regulatory requirements and available financial instruments.

The core contents of the course include:

[1] Liquidity management for banks

[2] Bank deposits

[3] Risks from term transformation; sun spots and bank runs; liquidity measures: liquidity coverage ratio (LCR), net stable funding ratio (NSFR)

[4] Regulatory liquidity requirements

[5] Money market/investment market instruments: securitization, repos, CP, ABS, CDO, ECB instruments, notes/bonds, convertibles, hybrids.

Optional contents can include:

[6] Issuance of bank bonds (treasury); information requirements

[7] Bank liquidity and financial crises: a critical discussion

[8] Settlement of financial market trades and liquidity.

This course assesses business models in the retail banking business. Particular attention is given to recent changes in the market focusing on the demand (customer behaviour, demographic developments, urbanisation) and supply side (move to new distribution channels, increased competition, standardisation of processes and products).

The core contents of this course include:

[1] Client-focused selection of product range

[2] Alternative distribution channels: retail-focused multi-channel, direct and social media distribution, mobile distribution

[3] Integration of various distribution channels to reach hybrid customers ("customer experience")

[4] Business decisions regarding the product range; [5] Media technologies, mobile communication and social media based business models ...

This course discusses the products used in retail banking, ass well as their pricing. A focus is set on risk and profitability control within the retail business of a bank.

The core contents of this course include:

[1] Overview of retail banking; range of product; features of the private and retail banking business

[2] Finance of private clients and small businesses

[3] Lending: assessment of the creditworthiness; collaterals; consequences of a payment default; loan monitoring; covenants

[4] Mortgage-backed lending; basics of real estate valuation; mortgages; management of interest rate risk; interest-free periods

[5] Pricing: loans, asset management services, retail banking services (current accounts, credit cards etc.)

[6] Private banking: saving products, life insurance, cross-selling.

Optional contents can include:

[7] Basic concepts of private wealth management ...

Innovation is key to sustained corporate success. This course discusses the management and control of the implementation of changes, also dealing with aspects of communication and conflict management. Theoretical concepts are illustrated by examples from practice and case studies.

The core contents of this course include:

[1] Typical settings that lead to change: e.g. technical innovations, scarcity of time and money, rise in systemic complexity, globalisation

[2] Coaching and development of employees

[3] Development of corporate structures; process-oriented controlling; filling of key positions; management by objectives

[4] Communication during stages of change

[5] Conflict management; addressing resistance

[6] Organisational adaptations post mergers and acquisitions.

Optional contents can include:

[7] Managing changes in the corporate culture

[8] Selection and commitment of external consultants

[9] Case studies: change management.

The LV discusses compliance with laws, regulatory requirements, codes of conduct, best practice standards and voluntarily followed guidelines in a company, with a focus on the banking respectively insurance sector. The course will also discuss the implementation of compliance management and illustrate it with practical examples, and will raise awareness of corporate governance in general, with special emphasis on the rules for good and sustainable corporate management and control in Austria.

The core contents include:

[1] Basics and scope: laws, guidelines, regulation, codes of conduct

[2] Practical implementation in the company; compliance management systems; implementation challenges

[3] Standard Compliance Code of the Austrian Banking Industry (WKO) and the Austrian Insurance Industry (WKO)

[4] Compliance Codes in international comparison

[5] Austrian Corporate Governance Codex

[6] OECD Principles of Corporate Governance; …

This course focuses on methods of effective leadership and team motivation. A general introduction is followed by considerations specific to team leadership in a professional setting.

The core contents of this course include:

[1] Leadership methods

[2] Motivational techniques

[3] Alignment of interest; incentive schemes

[4] Work-life balance.

Optional contents can include:

[5] Role plays, e.g. performance reviews; students shall receive feedback on their performance during simulations

[6] Further development of students' portfolios of competencies.

The course provides the basis for structuring and writing texts according to internationally established scientific standards. The seminar sets standards for writing project and seminar papers in subsequent courses. In addition, qualitative research techniques, such as interviews or questionnaires, are presented.

The core contents include:

[1] Source search

[2] requirements for scientific texts; references, rules of citation

[3] Scientific formulation of questions and structuring of scientific texts

[4] Qualitative techniques in scientific work: e.g. linking several sources, defining hypotheses, constructing and evaluating a questionnaire, designing, conducting and documenting qualified interviews, etc

[5] Qualitative research methods (focus groups, interviews and their evaluation or systematic analysis)

This course introduces quantitative methods for the production of research work in banking and insurance. These methods can, for example, be applied when subsequently completing the master thesis. Students will propose the topic and structure of their master thesis, the results have a major impact on the course grade. This shall encourage students to deal with the topic of their master thesis at an early stage, which in turn supports the efficient and timely actual production of the master thesis in the 4th semester.

The core contents of this course include:

[1] Collection, management and analysis of data

[2] Descriptive statistical data analysis

[3] Hypothesis testing

[4] Regression analysis

[5] Proposing the structure of the master thesis in form of a term paper.

Optional contents can include:

[6] Introduction to time series analysis.

The LV presents the instruments of profitability and risk controlling of a bank, which form an essential basis for monitoring and controlling business processes. The focus here is on the calculation of bank-specific ratios and their decomposition to the individual business areas. At the quantitative level, the focus is on risk-adjusted earnings management.

The core contents comprise:

[1] Functions and structure of the bank controlling system

[2] Results analysis, market interest method

[3] Overview of key figures in the banking sector with a focus on lending and custody business

[4] Contribution margin accounting in the bank

[5] Risk controlling (incl. overall bank VaR, economic capital)

[6] Performance measurement in the bank; earnings/return controlling: RoRAC, RoRWA, RoI

[7] Procedures for risk and capital allocation; decomposition of key bank figures; ...

This course discusses products and business models in the business area of corporate banking. Particular attention is given to those aspects of the business line that distinguishes it from others such as private banking. The control of risk and profitability within this business area is discussed in detail.

The core contents of this course include:

[1] Overview of corporate banking; product range

[2] Corporate finance

[3] Corporate lending: qualitative assessment of the borrower, its business plan, management and corporate governance structure; corporate valuation; collaterals; corporate structures and their relevance upon insolvency; credit monitoring; typical covenants

[4] Distribution strategies specific to corporate banking.

Optional contents can include:

[5] Products specific to corporate banking: cash management, structured finance, corporate/institutional asset management.

This course gives an overview of investment banking (IB) and explains the distinction between IB and classical corporate finance. Particular attention is given to M&A, corporate/acquisition finance and international capital markets.

The core contents of this course include:

[1] Overview of investment banking

[2] M&A: motivation, mergers, friendly takeovers, hostile takeovers, poison pills, takeover codes, corporate control (link to "Corporate Governance" module), typical M&A process, acquisition finance

[3] Financing through international capital markets: equity capital markets (IPO/SPO), debt capital markets (loan vs. bond, financial ratings), underwriting vs. book building, convertibles, hybrids, capital market investors.

Optional contents can include:

[4] Financial markets; principal investing, market making, client/principal trading.

This course may be taught in English.

This course investigates the key features of project finance, and some attention is put on the distinction between retail and corporate banking. Another focus is set on risk, structuring and profitability control in project finance.

The core contents of this course include:

[1] Overview of project finance; distinction between retail and corporate banking

[2] Product range in project finance

[3] Cash flow analysis in project finance; risk monitoring; performance figures and covenants

[4] Structuring of project finance solutions; capex and interest facilities

[5] Structural and legal aspects; collaterals; SPVs; insolvency procedures

[6] Risk and capital budgeting in project finance; balance sheet management through and covered bonds.

Optional contents can include:

[7] Case studies 'project finance': real estate, infrastructure, oil/gas/energy production

[8] Real estate economics.

During times of social and technological change, it becomes vital to understand and drive a bank's distribution strategy to ensure business success. This course deals with product sales by banks from both an operational and strategic point of view. Both the functional role and legal/regulatory aspects of the sales process are discussed.

The core contents of this course include:

[1] Sales strategies; organisation of distribution; multi-channel distribution

[2] Planning the sales process

[3] Strategic vs. operational sales controlling; reporting and benchmarking; performance measures, actual vs. target analysis, measures of control

[4] Managing employee motivation (MBO, incentive schemes, etc.)

[5] Legal framework for sales management in banking (consumer protection, taxation, guidelines such as MiFid II); role of regulation

[6] Case Study: sales strategy ...

This course raises ethical, social and environmental issues, and underlines their fundamental role for responsible and sustainable business conduct. A general introduction is followed by considerations specific to the bank and insurance sector.

The core contents of this course include:

[1] Ethics in finance/insurance/economics

[2] Example of an ethics code within the financial sector: CFA

[3] Corporate social responsibility (CSR): fundamentals, link to corporate culture, asymmetric information and communication, competitiveness, financial markets, distribution of profits, creating shared value (CSV)

[4] Socially and environmentally sustainable investing; green investments; positive investments; impact investments.

Optional contents can include:

[5] Practical examples of incorporating CSR

[6] Product design in Islamic finance and Takaful insurance.

This course may be taught in English.

This seminar accompanies the production of the master thesis. Students present the advanced but not necessarily completed results of their master theses, and defend their work during group discussions.

The core contents of this course include:

[1] Presentation of research results

[2] Presentation and discussion of each student's master thesis (advanced, but not necessarily completed)

[3] Critical discussion of others' master theses (topics within scope of specialisation).

The topic of the master thesis shall be chosen from the student's respective field of specialisation, bank management or management of insurance companies, respectively. Students shall work on the chosen topic independently and produce written work output that is in line with established scientific standards. The chosen topic shall be relevant in practice and connected research questions shall be answered by applying appropriate qualitative and quantitative research techniques.

Within the framework of the course, students work on case studies from the field of banking. The selection of case studies to be worked on is based on the current challenges of the banking industry and is especially dedicated to solution-oriented strategy development.

The contents of the case studies may include:

[1] Banking operations (especially internal banking processes)

[2] Sales and marketing

[3] Further and new development of business models

[4] Product innovations

[5] Regulatory issues

[6] Changing market conditions

[7] Human resources management

[8] Corporate strategy

The course includes a practical excursion to innovative companies and institutions of the financial and especially banking industry in Austria or abroad. During the excursion the participants will gain insights into new business models of so-called FinTech companies and their working methods.