Learning Outcomes:
Upon completion of this module participants should be able to
• Evaluate types of risk facing an organization and critically discuss ways of identifying, measuring and assessing the types of risk being faced and recommend appropriate responses;
• Explore the use of fundamental types of financial risk management instruments by firms and financial institutions and to critically discuss their purposes and relative importance;
• Evaluate risks in investment projects and changing capital structures in firms and recommend solutions for the financial risk of international operations.
• Apply a practical approach to implementing these instruments and models for valuation, risk management and financial engineering.
Indicative Module Content:
In particular, the module analyses the following:
• Operation and features of the instruments for managing interest rate risk;
• Operation and features of the instruments for managing currency risk;
• Theory and forecasting of exchange rates;
• Yield Curve Construction and Bond Mathematics;
• Value at Risk (VaR) and Conditional Value at Risk (Expected Shortfall);
• Principles of valuation of financial instruments for management and financial reporting purposes (IAS 39) and Basle III requirements.