This course will focus on the identification, quantification and management of market risk, financial risks, credit risk and operational risk of financial institutions and other corporations. Besides covering Value at Risk (VaR) models, the course also deals with issues such as financial regulation and capital adequacy including Basel II. Topics include volatility models, value at risk for stocks, currencies, bonds and derivatives such as futures, forwards, swaps and options; expected and unexpected loss due to credit risks, and operational risk measures.

CILO-1: Describe the role of financial risk management through risk identification, risk measurement and risk management. CILO-2: Analyze the sources of financial risk and the importance of implementing effective financial risk management procedures in business entities. CILO-3: Evaluate risk management strategies and their outcomes using derivative instruments to manage financial risks in a variety of assets. CILO-4: Demonstrate knowledge of the recent development of risk management tools and techniques in financial markets. CILO-5: Apply financial risk management concepts and techniques to real-life practical situations through cases and projects.