FIN3501 - Credit risk


New from the academic year 2020/2021

Examination arrangement

Examination arrangement: Written examination
Grade: Letters

Evaluation form Weighting Duration Examination aids Grade deviation
Written examination 100/100 4 hours C

Course content

This course gives an in-depth review of central models of credit risk. The course will start with an introduction to stochastic modelling using Brownian motions. There will also be an introduction to numerical methods (Monte Carlo simulations)

Learning outcome

You learn
- Mathematical modelling of risk and numerical methods to account for risk
- what credit risk is
- what factors are relevant to determine credit risk
- how capital structure decisions and credit risk are interrelated
You should be able to
- understand and explain what risk is
- make use of models for credit risk to analyze risk
- estimate the value of credit risky assets
- use ratings to assess credit risk
General competence
You should be able to
- use advanced economic models to assess credit risk

Learning methods and activities

2 hours of lectures every week. Compulsory activity: Approved term paper(s)/ exercise(s). Specific requirements will be announced at the beginning of the term.

Compulsory assignments

  • Compulsory aktivity

Further on evaluation

4 hours written school exam.

Specific conditions

Exam registration requires that class registration is approved in the same semester. Compulsory activities from previous semester may be approved by the department.

Required previous knowledge


Course materials

Announced at the beginning of the term

More on the course



Version: 1
Credits:  7.5 SP
Study level: Second degree level


Term no.: 1
Teaching semester:  AUTUMN 2020

No.of lecture hours: 2

Language of instruction: Norwegian

Location: Trondheim

Subject area(s)
  • Financial Economics
  • Economics
  • Economics and Administration
Contact information
Course coordinator: Lecturer(s):

Department with academic responsibility
Department of Economics



Examination arrangement: Written examination

Term Status code Evaluation form Weighting Examination aids Date Time Digital exam Room *
Autumn ORD Written examination 100/100 C
Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

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