Course overview
The course examines the process and instruments used in treasury management and their application in managing risk. Issues will be examined from both a financial institution and non-financial institution perspective. Topics include how financial risk management contributes to firm value; how to measure and manage market risks, credit risks and operational risks and how to deal with implementation issues of enterprise-wide risk management. The course will cover various methodologies of risk measurement and management including value-at-risk, expected shortfall, default probabilities, economic capital, RAROC and Enterprise Risk Management.
Course learning outcomes
- Interpret and discuss the role and relevance of financial risk management
- Apply various types of derivative securities to moderate financial risk exposures
- Formulate hedging techniques utilising derivative securities in order to achieve appropriate risk management outcomes
- Construct risk management tools, including VaR, to monitor financial risk exposures
- Comprehend the concept of integrated risk management and how to implement it across firms and financial institutions