This course will focus on variety of risks faced by financial managers and the tools available for managing these risks. Particularly, we shall focus on credit risk, interest rate and liquidity risks, market risk, foreign exchange risk, and country risk. We shall learn about the tools and techniques available for managing these risks such as future contracts, option contracts, swaps, value-at-risk (VaR) and other standard risk-hedging techniques, and methods of measuring volatility. Students attending this course are expected to have studied basic courses of investment and portfolio management and have good understanding of asset pricing models.

• Recognize the importance of implementing corporate financial risk management techniques and strategies;
• Develop and employ theoretical valuation methods to price financial instruments.
• Use quoting conventions for various short- and long-term securities and risk management products.
• Describe and understand the economic environment in which such instruments operate.
• Explore arbitrage and currency management opportunities.

• Introduction to Financial Risk Management
• Financial Engineering & Hedging
• Measuring volatility and Correlations
• Market Risk
• Credit Risk