This module aims to provide students with a sound understanding of the basic principles of risk management. The primary emphasis will be on measuring and managing different kinds of risks that modern enterprises face through their international operations. The module requires a good understanding of various areas of finance (e.g. corporate finance, derivatives, financial management etc.) and quantitative analysis. All these are brought together in a unified framework to analyse the strategies, techniques and tools for managing corporate risks.
A. Explain the role and scope of risk management in organizations and justify the need for a holistic approach to risk management.
B. Recognize and apply the principles which underpin the identification, measurement and management of risk in large organizations.
C. Undertake a critical analysis of risk from the viewpoint of the individual transaction, the business model and the organization.
D. Describe and evaluate the effectiveness of a variety of approaches to risk financing, risk transfer and risk control, and the factors driving the corporate demand for such approaches.
E. Identify and discuss the nature of various financial risks (such as market risk, interest rate risk, credit risk, liquidity risk, and operational risk) and recommend risk management solutions in the context of financial institutions.
F. Identify, research and make appropriate use of source material relevant to organizational risk management, and use appropriate references to, and compile a bibliography of, such material.
This module will be taught using a combination of lectures, tutorials and consultation hours. Learning will also be reinforced by appropriate readings of research papers.