SIM 311: Risk Management

Learning Outcomes

Upon completion of this course, students should be able to:

1. demonstrate knowledge capability on the concepts and theories of risk management;
2. display knowledge capability from understanding the reasons for risk management;
3. Identify and classify major types of business risks; and
4. apply the practice of risk management arising from being exposed to the current paradigm on governance, regulatory systems, industry practices for managing risks.

Course Contents

Areas to be covered include: – Introduction to general risk management theory, how and why it generates value. Classification of risks, including Market Risk, Credit Risk, Liquidity Risk, Operational Risk, Model Risk, Regulatory Risk, Legal/Contract Risk, Tax Risk, Accounting Risk, and Political Risk. Introduction to Governance and Regulations. Standard measures of risk. Risk measurement for security portfolios. Hedging techniques using financial derivatives. Evaluation of hedging performance.