RISK MANAGEMENT

CORE SUBJECTS

Risk Assessment, Analysis and Evaluation

This module is designed to provide the key methods and approaches relevant to conceptualising risk determinants, modelling the implications associated with varying risk levels, risk targeting, minimising risk ratios and maximising the return on risk in a wide range of domains including credit, insurance, liquidity, currency, and foreign exchange. Specific risk control measures as well as tailor-made risk management tools with respect to hedging and the derivatives industry will be under thorough interview. The debate over alpha versus beta in forecasting returns on financial assets will also be explored from various perspectives including various competing asset pricing models. Other less traditional, newly arising risk issues related to political risk, legal risk and operational risk will also form important dimensions of discussions.

The principal objectives of the course are the following:

• Learn how to identify risk challenges and opportunities associated with a financial or non-financial product, service or process
• Acquire a sophisticated vision to surmount unique volatility and uncertainty issues that may confront the risk manager in today’s rapidly evolving risk environment
• Attain advanced modelling skills to trace the impact of various potential risk scenarios in a given context
• Develop technical and managerial know-how in order to structure previously seen risk factors from a new perspective and embryonic risk issues with originality and innovative dynamism

Risk Control and Treatment

This module is designed to provide students with the key methods and solutions in order to minimise financial risk to the organisation by reducing, transferring, elimination and retention of financial risk. Students will examine various risk reduction methods pertaining to a wide range of areas such as business process and strategy, IT integration and reorganisation, environmental impact, financial exposure, credit fraud, health and safety, HR, market fluctuations, political instability, product quality and liability. The module considers various risk domains through physical, procedural and personnel controls. Students will also learn how to transfer risk through insurance, considering outsourcing of risk as an option when looking at the various potential threats an organisation may have to face. Students will gain a thorough knowledge of the different types of re-organisation approaches, such as diversification, franchising and joint venture that will provide the company with enhanced stability in the face of perceived and real risks. Finally, the course provides formal models of risk measurement to identify, examine, eliminate risk or alternatively retain insurable risk to benefit company position under uncertain market conditions.

The principal objectives of the course are the following:

• A thorough understanding of the common solutions for minimising the risks for organisations and the ability to identify the most important areas of risk
• Identify the different approaches that can be used in order to minimise, transfer and share risk within and between organisations
• Ability to identify the boundaries of risk elimination and where the various risks might affect the organisation
• Ability to identify when a risk can be minimised or eliminated