Financial Risk Management

Module code: MN7527

This module provides an overview of risk management, forward and future markets, the Capital Asset Pricing Model and Arbitrage Pricing Theory, swaps, options and corporate finance, warrants and convertibles, risk management strategy, interest rate risk and security design.

At the end of this module students will:

Understand the nature of financial risks.
Understand the trading rules for financial derivatives.
Understand how financial derivatives can help to hedge financial risks.
Have the ability to evaluate alternative methods available and their shortcomings in hedging.
Have the ability to take decisions on whether or not to hedge a particular financial risk.

Topics covered

Risk management
Forward and future markets
Capital Asset Pricing Model
Arbitrage Pricing Theory
Swaps
Options and corporate finance
Warrants and convertibles
Risk management strategy
Interest rate risk
Security design