Course overview
This course will provide students with a comprehensive introduction to the financial risks faced by financial, and non-financial organisations. Risks faced by the financial institution: market risk, credit risk, operational risk, risks in the regulatory environment. Risk management frameworks, policies and implementation systems, in the financial and non-financial corporate sectors. Measuring financial risks and the implications of model risk for their measurement. Portfolio analysis and the measurement of risk. Measuring risks in detail: market risk and the VaR and CFaR approaches; credit risk, credit ratings and contingent claims; and actuarial approaches in insurance. The management of risks: banks, non-bank financial institutions and non-financial corporations. The future of risk management and the convergence of insurance risk management with financial risk management.
Course learning outcomes
- Define the risk faced by the different types of financial and non-financial organisations.
- Describe the alternative approaches available for the measurement of market, credit and operational risk according to the industry in which the organisation is located.
- Distinguish between insurable and non-insurable forms of risk.
- Describe alternative risk management strategies and their application.
- Discuss the pattern of convergence being observed between the finance and insurance markets.
- Demonstrate UniSA Business Enterprise Skills in the context of the Finance discipline: Problem Solving (advanced level).