SEU Risk Management ( FIN301 )

This course examines modern techniques for managing financial risks. Financial risks are generally classified into market risks, due to movement in financial prices or volatilities, credit risks, due to fact that counterparties are unwilling or unable to fulfill their contractual obligations, liquidity risks, when transactions cannot be conducted at prevailing market prices, perhaps due to cash flow constraints, and operational risks, which arise from human or technical problems. The course will cover measurement techniques for different types of financial risks (equity, fixed income, currency, commodity) and instruments. It will cover tools such as duration, portfolio beta, factor sensitivities, portfolio distribution analysis, and value at risk (VAR). It will also discuss how risk measurement tools can be used for active management of the risk/return profile of financial institutions.

1.       Understanding of risk, risk management in corporate context

 2.       Competence in understanding the enterprise risk management framework

 3.       Ability to calculate corporate risks

 4.       Competence in develop of corporate risk management program

 5.      Ability to evaluate corporate risk management processes

 1.      Risk Management a Helicopter View

2.      Corporate Risk Management

3.      Banks and Their Regulators—The Research Lab for Risk Management

4.      A User Friendly Guide to the Theory of Risk and Return

5.      Interest Rate Risk and Hedging with Derivative Instruments

6.      From Value at Risk to Stress Testing

7.      Asset –Liability Management

8.      Credit Scoring and Retail Credit Risk Management

9.      Commercial Credit Risk and the Rating of Individual Credit

10.  New Ways to Transfer Credit Risk—And their Implications

11.  Operational Risk

12.  Risk Capital Attribution and Risk –Adjusted Performance Measurement