FN 674 Advanced Risk Management
The complexity of the global financial system makes understanding risk management essential for anyone working or planning to work in the financial sector. As the real economy is also exposed to financial risk, risk management has become more important to non-financial corporates and institutions. Students will become familiar with financial risk assessment and management and the regulations applicable for financial institutions. They will learn how important market participants, such as banks, insurance companies, pension funds, and mutual and hedge funds are looking at risk measurement and management. Risk mitigation strategies are explained. Various risk types such as market risk (interest rate risk, cross-currency risk, etc.), credit risk, operational risk, and systemic risk are covered, and risk management strategies and instruments are analyzed. Recent risk management topics such as counterparty credit risk for derivatives, central clearing, and collateralization will be covered.