Risk Management & Financial Institutions

mlsmm2126  2021-2022  Mons

Risk Management & Financial Institutions
5 credits
30.0 h
MGEST1219 Finance
Main themes
The course introduces, analyses and quantifies the risks
managed by financial institutions. On completion of this
course, students will have knowledge of the main financial
institutions and the regulations governing them. They will
understand how market, credit, liquidity and operational
risks are managed.

At the end of this learning unit, the student is able to :

1 At the end of this course, students will be able to:
- Identify and describe the main risks faced by financial
institutions (banks, insurance companies and pension
funds, mutual funds).
- Explain the trade-off between risk and return and how
financial institutions make money by taking on and
managing risk.
- Identify and describe the main techniques banks use to
measure and manage risks (credit risk, market risk,
operational risk, liquidity risk).
- Explain the prudential regulation framework of the
financial sector and its effect on financial institutions' risk
Content of lectures (in english):
  • Part 1: Introduction, Financial Institutions and Trading in Financial Markets
  • Part 2: Market Risk – Volatility, Dependence, Value-at-Risk, Expected Shortfall
  • Part 3: Basel Regulation and Credit Risk
The group assignment is composed of theoretical and practical exercices that apply the different concepts covered in the lectures.
Teaching methods
  • Lectures
  • Group assignment
Evaluation methods
Written exam in session (80%) + group assignment (20%)
Online resources
Student corner
John C. Hull, Risk Management and Financial Institutions (5th edition), Wiley, 2018
Faculty or entity

Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Master [120] : Business Engineering

Master [120] in Management

Master [120] in Business Management

Master [120] in Management

Master [120] : Business Engineering