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Unit of study_

FINC6023: Financial Risk Management

Risk is an integral part of financial decisions. Following the rapid evolution of the discipline of financial risk management, analysts must be prepared to access the level of risk in the marketplace. This unit explores the basic concepts of modelling, measuring and managing financial risks within the regulatory framework. Topics covered include market risk (value-at-risk and expected loss), credit risk (single name, portfolio, ratings and market based models, credit derivatives), liquidity risk and operational risk. To overcome the rather quantitative nature of the topics, the unit relies heavily on practical based lab exercises with emphasis on simulations, real life examples and case studies.

Code FINC6023
Academic unit Finance
Credit points 6

At the completion of this unit, you should be able to:

  • LO1. identify and explain the characteristics of market, credit, operational, legal, regulatory and reputation risk
  • LO2. identify key financial risks in corporations
  • LO3. construct and evaluate risk management models
  • LO4. apply hedging techniques in managing market risk.