Financial Risk Management 5 credits

Uncertainty and market volatility shape financial outcomes, making financial risk management essential for corporations, financial actors, and sound policy. Organisations value professionals who can recognise key sources of financial risk, interpret their implications, and propose proportionate ways to contain them in line with regulatory standards. This is why you will be provided with a foundational overview of credit, market (interest-rate, foreign-exchange, equity, and liquidity), operational, and macro-financial risk. Emphasis is placed on both measurement and mitigation: you will work with identifying exposures, while using analytical techniques and simple simulations when closed-form solutions are unavailable, and understanding dependence through correlations for portfolio aggregation. You will be introduced to standard market tools — such as risk measures and portfolio loss metrics (including value-at-risk)—together with the idea of risk capital and portfolio risk decomposition. On completion, you will be prepared to interpret core risk indicators, describe exposures at the asset and portfolio level, and outline practical mitigation options. You will develop competencies that are applicable in financial markets, diverse organisational settings, and policy environments, where disciplined, evidence-informed financial risk management is essential.