Financial Engineering and Risk Management

The concepts of financial risk management change dramatically in the international realm. Multinational Corporations are faced with many different obstacles in overcoming these challenges.

Table of Contents

Unit 1 Risk Identification, Analysis and Management

• Unit Objectives
• Nature And Sources Of Risk
• Types Of Risk
• Market Risk
• Liquidity Risk
• Credit Risk
• Operational Risk
• Steps In The Risk Management Process
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 2 Risk Management In Banks

• Introduction
• Unit Objectives
• Banking Activities
• Banking Risks
• Banking Regulations
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 3 Market Risk

• Introduction
• Unit Objectives
• Approaches To Market Risk Measurement
• Calculating Value At Risk
• Uses And Limitations Of Var
• Extensions Of Var
• Testing Var
• Market Risk Under Basel
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 4 Credit Risk

• Unit Objectives
• Default And Migration Probabilities
• Historical Data On Defaults And Migrations; 4.2.2 Cumulated Default Rates
• Default Rates Volatility; 4.2.4 Transition (Migration) Matrices
• Estimating Future Default Probabilities; 4.2.6 Rating Systems
• Techniques For Modelling Ratings And Default Probabilities
• Credit Risk Exposures
• Credit Risk Mitigants
• Recoveries
• Collateralized Securities Risk Modelling
• Valuation Of Credit Risk Guarantees
• Credit Risk Spreads And Credit Risk Valuation
• Credit Spreads; 4.5.2 Risk Neutral Valuation And Default Probabilities
• Standalone Credit Risk Distributions
• Default State; 4.6.2 Full Valuation Of Migration Risk
• Credit Risk Correlations
• Modeling Correlations From Credit Risk Factors
• Modelling Joint Defaults And Migrations
• Generating Loss Distributions
• Capital And Credit Risk Var
• Credit Risk And Basel
• Credit Risk Management
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 5 Operational Risk

• Introduction
• Unit Objectives
• Operational Risk
• Measurement Of Operational Risk
• Managing Operational Risk
• Operational Risk Under Basel Accord
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 6 Liquidity Risk

• Unit Objectives
• Assessing Asset Liquidity Risk
• Funding Liquidity Risk
• Alms And Excess Of Funds
• Liquidity Risk Management
• Liquidity Risk Under Basel
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 7 Risk Management In Insurance Companies

• Unit Objectives
• Insurance Risks
• Reinsurance
• Alternative Risk Transfer Methods
• Summary
• Key Term
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 8 Currency Risk

• Unit Objectives
• Exchange Exposure      
• Managing Transaction Exposure
• External Hedging Methods
• Internal Hedging Methods
• Managing Translation Exposure
• Managing A Swap Book           
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 9 Risk Management in Service Sector Companies

• Unit Objectives
• Client Concentration Risk
• Customer Satisfaction
• Competition Analysis
• Porter’s Framework For Competitive Analysis
• Summary
• Key Terms
• Answers To ‘Check Your Progress’ 
• Questions And Exercises
• Further Reading

Unit 10 Credit Derivatives

• Unit Objectives
• Views On Credit Derivatives
• Credit Default Products
• Total Return Swaps
• Credit Spread Products
• Basket Swaps And First-To-Default
• Credit Linked Notes
• Collateralized Debt Obligations
• Applications Of Credit Derivatives
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Unit 11 Commodity Derivatives for Risk Management

• Unit Objectives
• Commodity Risks
• Impact Of Commodity Risk
• Managing Commodity Risk
• Commodity Derivatives
• Applications Of Commodity Derivatives
• Summary
• Key Terms
• Answers To ‘Check Your Progress’
• Questions And Exercises
• Further Reading

Once the candidates have completed their training, they can take the exam required for certification.

You can enroll for your programs by paying through four options:

1. You can pay online using your credit card.
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4. You can always courier the Cheque to us. Please call us or write to us for our postal address.

Payment can be made by Cheque / DD in favour of “IACT GLOBAL”.

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