ÐÓ°ÉÂÛ̳

Companies must take risks if they are to survive and prosper. The risk management function plays a critical role in understanding a company’s current exposure to risk and the risks it plans to take in the future.

This course is designed to develop your understanding of risk management practices to thrive in an increasingly competitive and complex business environment. Starting with an introduction to the classification of risk, diversification, hedging strategies, and optimal portfolio choice, you will move on to tackle important topics like how endogenous risk can be used to understand the origins of financial risk within the financial system. You will also explore behavioural aspects of risk and their impact on risk management practices.

This hands-on course allows you to apply the theory to real-world situations, giving you the tools and techniques needed to assess financial risk in various sectors, such as banking, insurance, asset management, hedge funds and regulation. By the end of the course, you will know how to critically assess risk management research and reports in an industry setting, understanding the limitations of quantitative risk management in real-life situations.

Prerequisites: Basic mathematics and statistics. Introductory Finance (to the level of FM250) or Introductory Microeconomics (to the level of EC101).

Level: 200 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: Two written examinations

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

This course helps to develop relevant knowledge and understanding of risk management practices. It is especially useful if you are aiming to advance your career in the competitive world of global finance, in fields such as asset management, hedge funds, investment analysis or risk management.

• Learn the main tools and practices needed to assess and evaluate financial risks
• Understand risk management practices in an industry setting
• Gain the ability to critically assess risk management reports and research
• Define the use and implementation of Value-at-Risk and its use in risk forecasts
• Understand the impact of the credit crisis and its implications for risk management and regulation

The design of this course is guided by ÐÓ°ÉÂÛ̳ faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.