4.0

credits

Average Course Rating

Financial markets are environments where participants directly or indirectly operate based on different needs and preferences for risk. Regulators have the responsibility to make sure that all risks are identified, assessed and managed to avoid unnecessary concentrations. The purpose of this course is to provide students with an overview of the different types of risks involved in various market operations. They’ll learn how quantitative techniques can be applied to measure and mitigate these risks. The course begins with an overview of financial markets players and concrete use cases are provided to understand what their needs are. Some of the key risk factors will be presented together to examples of instruments that are available for risk management. Stress testing will be explored as a tool to inform decision making and to uncover unpredicted adverse circumstances. Numerical examples and assignments will be given to students to gain a deeper understanding on the topics analysed. Insights to the role of regulators to minimize systemic risk will be offered with specific reference to capital adequacy requirements.