Risk Management of Financial Institutions

llsms2009  2022-2023  Louvain-la-Neuve

Risk Management of Financial Institutions
5.00 credits
30.0 h
  • portfolio theory,
  • basic understanding of probability theories,
  • statistics,
  • financial markets and financial instruments.
Main themes
The two main themes addressed in this course are :
  1. how do Financial Institutions quantify and manage their risks ( through  the concepts of Economic Capital, RARORAC and EVA with a special focus on Credit and Counterparty risks, ALM risk, Trading risk, Operational risk and Securitization)
  2. the impact of the new banking regulations on the risk appetite, the business model and the governance of these Institutions.
Learning outcomes

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

  • knowledge and reasoning (apply the acquired knowledge accordingly to solve a problem)
  • a scientific approach (consider problems using a systemic and holistic approach)
  • teamwork (join in and collaborate with team members).
These learning outcomes will crystallize through a set of workshops and interactions with the teacher during the class.
The course aims at better understanding the risks present in financial institutions.
It will cover the following topics:
                     - Financial Institutions and Trading in Financial Markets
                     - Market risk
                     - Bank regulation and credit risk
                     - Liquidity, Operational and model risk
                     - Systemic risk
Teaching methods
Lectures, inverted classrooms, workshops, interventions by experts, assigments, final project
Evaluation methods
Lectures,  MCQ, workshop assigment, project
Online resources
Moodle and teams
John C. Hull (2018) “Risk Management and Financial Institutions”, 5th edition.
Roncalli, T. (2020), "Handbook ofFinancial Risk Management", Chapman Hall/CRC Financial Mathematics Series,which is available at http://thierry-roncalli.com/RiskManagement.html.
Faculty or entity

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

Title of the programme
Learning outcomes
Master [120] in Management

Master [120] in Management [CEMS Programme]