Business and management studies
Financial Risk Management
Module code: N1569
15 credits in autumn teaching
Teaching method: Lecture, Seminar
Assessment modes: Coursework, Unseen examination
You learn about a wide range of market risks including currency, interest rate, equity and commodity. You also look at credit risks.
During the module, you learn to map portfolios to risk factors, compute risk metrics (value-at-risk, and credit value adjustments), and look at rudimentary model validation and stress testing.
- credit risk, credit derivatives and other mitigation
- financial risks and hedging principles
- hedging with forwards, futures and swaps
- market risk, volatility and correlation.
Module learning outcomes
- Identify and compare financial market and credit risks, and explain how to assess risk attitude
- Recognize the major characteristics of hedging instruments, and appraise hedging costs and residual risks for various hedging strategies
- Implement models for measuring the market risk of portfolios of equities, interest-rate-sensitive products, commodities, futures and options and test their performance
- Critically assess the application of regulatory and economic capital to financial risk management policies