MBA in Finance & Banking and M.S. in Financial Technology & Analytics Dual Degree Master's Program

This course deals with risk management concepts in financial systems. Topics include identifying sources of risk in financial systems, classification of events, probability of undesirable events, risk and uncertainty, risk in games and gambling, risk and insurance, hedging and the use of derivatives, the use of Bayesian analysis to process incomplete information, portfolio beta and diversification, active management of risk/return profile of financial enterprises, propagation of risk, and risk metrics.

Introduction to information theory: the thermodynamic approach of Shannon and Brillouin. Data conditioning, model dissection, extrapolation, and other issues in building industrial strength data-driven models. Pattern recognition-based modeling and data mining: theory and algorithmic structure of clustering, classification, feature extraction, Radial Basis Functions, and other data mining techniques. Non-linear data-driven model building through pattern identification and knowledge extraction. Adaptive learning systems and genetic algorithms. Case studies emphasizing financial applications: handling financial, economic, market, and demographic data; and time series analysis and leading indicator identification.

In this course the students will learn how to estimate financial data model and predict using time series models. The course will cover linear time series (ARIMA) models, conditional heteroskedastic models (ARCH type models), non-linear models (TAR, STAR, MSA), non-parametric models (kernel regression, local regression, neural networks), non-parametric methods of evaluating fit such as bootstrap, parametric bootstrap and cross-validation. The course will also introduce multivariate time series models such as VAR.

Effective visualization of complex data allows for useful insights, more effective communication, and making decisions. This course investigates methods for visualizing datasets from a variety of perspectives in order to best identify the best solution for a given task. Students will use a number of tools to refine their data and create visualizations, including: R and associated visualization libraries, Tableau 2020, Gephi, and web-based applications.

This course covers emerging topics in the area of financial technology and also allow students to develop practical programming, statistics, and mathematical skills that are valued in the Fintech industry. We will explore topics from both theoretical and practical perspectives in the areas of digital currency and blockchain technologies, automated wealth management, digital lending, peer-to-peer applications including payments and insurance, machine learning financial applications.

This course focuses on traditional machine learning algorithms (random forests, support vector machines and conditional random fields) as well as recent developments in deep neural networks focusing primarily on the TensorFlow library. The distinctions between various types of algorithms (supervised, unsupervised and reinforcement learning) are developed, as well as the relationship between the quality of the data and complexity of the model.

This course explores how to apply fundamental machine learning models to predict financial time series and solve financial problems. Some of the financial applications explored are algorithmic trading, model calibration, portfolio optimization and risk management.

Prerequisites: Any of BIA 656, FE 590, FE 690, MIS 637 or CS 559

A minimum of six credit hours is required for the thesis. Hours and credits to be arranged. You will need both an advisor and a reader to complete this course; interested students should contact their academic advisor for complete details.

Financial Institutions and Markets - FN765E (5 ECTS)

This course deals with financial markets, where participants are given asymmetrical information. The main intention is to cover basic concepts, as well as to review current issues within the area of financial markets and institutions. We’ll examine the role of financial intermediaries in the process of resolving information asymmetry on the loan market and in promoting economic growth. The main goal of Financial Institutions and Markets course is to introduce main types of financial institutions, markets and instruments as well as to improve knowledge of the model of functioning of international markets and institutions, interaction of main market participants and institutional and regulatory environment. Students should be learnt how to create critique overview of general and particular financial market events as well as clear insight in market structure and development. Students would be able to recognize key patterns and trends in global financial markets and to evaluate their impact on national economies and markets.

Financial Derivatives - FN548E (5 ECTS)

The course deals with market strategies based on financial derivatives, and different concepts of risk insurance (hedging). The theory that deals with the lectures extensively supported by practical examples from the world of finance, so that students get a detailed insight into the issues and challenges they face every day of the investment company, and meet customer requirements. The very principle of valuation of futures and options requires a mathematical approach, since the basic relations are based on the principle of’ the impossibility of the existence of arbitration (concept of no arbitrage). The course covers market strategies based on derivatives as well as different hedging concepts. The lectures do not focus solely on theory, lot of practical examples are discussed so that students get better overview of the problems and challenges investment companies and their clients face on daily basis. Option and futures evaluation is based on concept of no arbitrage, so students should have a good understanding of algebra. This course should attend students who plan to work in risk or portfolio management, trading, corporate finance or related fields.

Quantitative Methods for Managers - MT714E (5 ECTS)

Value Maximization - FN547E (5 ECTS)

This course helps students understand the constant and systematic management of functions within organizations so that they are competitive in today’s market. As part of this course, students do a Capstone computer simulation. The importance of value maximization for shareholders and a number of other points of view are discussed using theoretical concepts applied in the simulation. Students manage all aspects of business: production, marketing, logistics, finance, human resources, etc.

Managerial Techniques - MN570E (5 ECTS)

Managerial skills are entirely focused on practical exercises. They cover three different management techniques: presentation, business negotiation and business decision making. In the first part of the lecture, students will develop and hone their presentation skills. In addition to recording and analyzing their speeches, students will work on additional exercises that include video recording and situation analysis.The second part of the lecture will focus on important theoretical concepts that will help students understand the negotiation process and improve their negotiation skills. This is followed by a series of exercises designed to develop negotiation techniques (distributive and solidarity negotiation, trust, capital, personal style, creativity, multi-stakeholder negotiation, etc.).In the last part of the lecture related to business decision making, students will be introduced to intuitive, rational, programmed and unprogrammed, and interactive decision making. Advanced topics such as game theory and value-added information in decision-making will be presented to students for the first time during their studies.

Portfolio Management and Investments - FN553E (6 ECTS)

The course consists of two parts: in the first part students will acquire basic knowledge of the principles of investing, they will analyze the types and characteristics of securities available for investment, and financial markets in which are they traded and investment environment. It will also be considered the valuation of financial instruments and their selection criteria for the investment portfolios of individuals and businesses. The course covers the modern theory of investment as well as traditional approaches to selecting and managing investments. The course objective is to provide students with a complete overview of the investment process and portfolio structuring. Also, through case studies and project assignments students be will encouraged to think analytically, i.e., to locate and solve problems in capital market practice. Adopted knowledge should help the participants making rational investment decisions.

Financial Management - FN552E (5 ECTS)

Financial Reporting and Analysis - FN760E (5 ECTS)

The aim of the course is to analyze the application of the International Financial Reporting Standards (IFRSs) through selected case studies. Students will be presented the regulatory framework for financial reporting in the EU and Croatia based on regulations and international standards. The content and structure of the IFRS will be historically reviewed. Special attention will be given to the formulation of the accounting policy in the areas of recognition and measurement of accounting categories as well as of publishing in the accounting reports pursuant to the IFRS.

Business Ethics and Corporate Social Responsibility - SC600E (6 ECTS)

Business ethics is not a clear and unambiguous area; it is exposed to numerous interpretations within the context of “what is the right thing to do”. The course comprises discussions on interrelations between economic, legal, political, social, cultural and ethical issues in the definition of the business policy, managerial decision making at the stage of the business policy implementation, and, finally, as an integral part of business activities. Although CSR is a relatively new term, its roots go back a long time and can be traced to a variety of philosophical, ethical, and environmental discourses. Thus there are a number of different approaches to CSR as well as a number of different definitions of what exactly CSR comprises. Furthermore the concept has been extended to apply not just to corporations but to many other (not necessarily profit seeking) forms of organisation. The concept of CSR is therefore complex. It is the purpose of this course to introduce students to this complexity and to the various components which might comprise socially responsible behaviour. In doing so it is intended to provide a framework both for further study and for planning and evaluating the actions and performance of an organisation in the context of sustainable and socially responsible activity. Particularlly: (1) Developing sensitivity to immoral and irresponsible acts in business world. (2) Encouraging proactive behavior in favor of ethical standards. (3) Developing know-how of incorporating ethical standards in business procedures and detecting irresponsible acts in companies.

Leading in Organizations - MN610E (5 ECTS)

Different forms of leadership are key to the survival of all types of organizations. With the help of practical examples and role-playing, this course emphasizes motivation, understanding, interpersonal relationships, communication models, change management, listening skills, teamwork, conflict resolution, negotiation, time management, goal setting and organizational values.

Internship - TR429 (3 ECTS)

The aim of the internship is to enable students to apply academic knowledge and skills in a real business environment and to develop the accompanying independence, responsibility, and creativity necessary to perform business and work tasks in situations of practical business activities. Students are encouraged to connect their internship with the preparation of the graduate thesis in a way that through internship they apply the knowledge and skills acquired during their studies, but also in collecting and analyzing primary and secondary data and proposing recommendations based on that data.

Graduate Thesis - DS (7 ECTS)

The final step in graduate studies is writing a master thesis in the field chosen by the candidate and mentored by a professor teaching in this field. Before embarking on the research project, the candidate has to submit the proposal of his/her topic, including the methodology used in the research. The mentor assists the candidate in the course of his/her research project and the completion of his/her thesis.