Risk Management in Financial Institutions

Course goals

Learning objectives
At the end of the course the student is able to:

• Understand the nature of different kinds of risk facing a financial institution;
• Apply common models and methods to quantifying and managing risks as they are used in financial institutions today;
• Understand the outcome of risk management techniques and equally importantly, their pitfalls and limitations.

Content

This course deals with the ways in which risks are quantified and managed by financial institutions, especially banks and asset management companies. Among the topics covered are the nature of financial institutions and their activities, the major risks facing them, and the common techniques currently employed by financial institutions to manage those risks today. Throughout the course, some aspects of financial regulations and lessons from the credit crisis which started in 2007 are also discussed.
  
Potential topics to be covered in the course are:

• Overview of financial institutions and their trading;
• Trading risk and management techniques;
• Interest rate risk and management techniques;
• Market risk and management techniques;
• Credit risk and management techniques.

In case online access is required for this course and you are not in the position to buy the access code, you are advised to contact the course coordinator for an alternative solution. Please note that access codes are not re-usable meaning that codes from second hand books do not work, as well as access codes from books with a different ISBN. Separate or spare codes are usually not available.