Financial Risk Management

Managers with a finance responsibility are expected to have a working knowledge of the principles and practices of financial risk management. Financial reporting is now seen as less important than skill in financial decision making. The volatility in financial and commodity markets clearly shows that firms face risks. Financial risk management aims to analyse, control, and if necessary, reduce those risks to an acceptable level. This is an essential aspect of financial management and one increasingly sought by practitioners. The course aims to integrate risk management as part of financial theory and practice.

Topics covered

  • Risk and the management of the firm.
  • The markets.
  • Market mechanisms and efficiency.
  • Interest-rate risk.
  • Currency risk.
  • Equity and commodity price risk.
  • The behaviour of asset prices.
  • Risk assessment.
  • Controlling risk.
  • Quantifying financial risks.
  • Financial methods for measuring risk.
  • Qualitative approaches to risk assessment.

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