Risk Management Tools and Practices
Introduction to risk management techniques including the use of standard hedging instruments, asset-liability management and integrated risk management.
CPE Credits: 7
This course is a component of the Risk Management Professional Certificate.
Prerequisite knowledge:
- Basic MS Excel skills
- Basic probability and statistics
- Basic knowledge of financial securities and markets
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To make it even easier to learn, you can finance your program through Affirm.
Loans offered through Affirm are available in the U.S. and Canada.
Module 1: Risk Management Tools and Practices
- Risk management tools - Index futures, Equity swaps, Options
- Exposure and loss limits
Module 2: Asset-Liability Management
- ALM governance
- Interest rate risk on the balance sheet - Funding / rate gaps, Duration gaps, Balance sheet immunization
- Liquidity risk on the balance sheet
- Credit risk on the balance sheet
- Market value of equity at risk
- Securitization: An ALM tool
Module 3: Operational Risk and Integrated Risk Management
- What is operational risk? - Internal fraud, External fraud, Employment practices, Obligations to clients
- Examples of operational risk failures - Rogue Trading: Allied Irish Bank, 2002, Customer Business: Enron, 2001, Rogue Trading at Societe Generale, 2008)
- Operational Value at Risk
- Integrated risk management - Economic capital, risk capital and regulatory capital
- Risk Governance: Best practices