Risk Management in Banking
Aims
The aim of this course is to provide a sound understanding of the basic principles of risk management, with an emphasis on financial firms. It provides a rationale for corporate risk management by explaining how risk affects the value of the firm. It presents several financial instruments that can be used as risk management tools. It also suggests several strategies that the financial institution can use to improve its resilience to risk.
Learning Outcomes
Students will be able to:
- Understand the impact of risk on firm value
- Appreciate the strengths and weaknesses of alternative risk strategies
- Develop effective risk management strategies
- Understand the limitations of risk management strategies
- Evaluate the impact of proposed changes in the regulatory regime.
Content
- Types of risk faced by financial and non-financial firms
- Effect of risk on the value of the firm and the financial institution
- Rationale for corporate risk management
- Foreign Exchange & Interest Rate risk
- Commodities risk
- Derivatives and risk management
- Pensions plans risk management
- Enterprise risk management
- Basel II and Basel III
- Risk management methodologies
- Risk identification and analysis
- Operational risk control: practical loss prevention, crisis management, disaster recovery planning