Risk Management & Financial Institutions

mlsmm2126  2022-2023  Mons

Risk Management & Financial Institutions
5.00 credits
30.0 h
Q2
Teacher(s)
Language
English
Prerequisites
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.
Learning outcomes

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 taking.
 
Content
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
Bibliography
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
Sigle
Credits
Prerequisites
Learning outcomes
Master [120] in Management

Master [120] in Business Management

Master [120] : Business Engineering

Master [120] in Management

Master [120] : Business Engineering