Financial Risk Management

Catalog description

This course provides an overview of financial risk management with particular relevance to the management of financial services firms and corporate financial management. The course will examine overall enterprise risk, as well as market risk resulting from volatility of financial asset prices; interest rate risk resulting from uncertainty in yields; credit risk resulting from parties not fulfilling contractual obligations; liquidity risk when an asset cannot be traded quickly at the prevailing market price; and operational risk resulting from managerial or technical issues. The course will also discuss risk measurement tools such as value at risk, beta, portfolio beta, factor sensitivities, duration and portfolio distributions. The course will discuss the relevance of risk measurement tools to the management of financial services firms. Prerequisite Course(s): Prerequisite: FINC 501 or a waiver