Fin 450 – Financial Risk Management

Course Description

This course introduces students to the tools, concepts, and issues of financial risk management. The objective of the course is for students to acquire an understanding of the central issues in the analysis of the different kinds of financial risks and how to manage them. It will allow students to enhance their ability to use different kinds of technical tools such as Monte Carlo simulation, statistics & probability as well optimization tools. This course is also very important for those who are pursuing the Financial Risk Management (FRM) given by the Global Association of Risk Professionals (GARP).

Course Learning Outcomes

Upon successful completion of the course, students will be able to:

  • Understand financial risks.
  • Master the analyses of financial institutions’ risk management using both quantitative and qualitative tools
  • Analyze how firms and financial institutions can manage their risks.
  • Be prepared to take the Financial Risk Manager (FRM) certification

Course Materials

  • Risk Management and Financial Institutions, John Hull, Wiley, 2018, 5th edition.
  • Statistics for Business and Economics, 8th edition, Pearson, 2013.

Course Content

  • Introduction to Risk Management
  • Market Risk
  • Interest Rate Risk
  • Credit Risk
  • Operational Risk

TBS Grading Scale

Scale (out of 100)TBS Grading ScaleGrade Point
Grade > 90A4.0
87≤ Grade < 90A-3.7
83 ≤ Grade < 87B+3.3
80 ≤ Grade < 83B3.0
77 ≤ Grade < 80B-2.7
73≤ Grade < 77C+2.3
70 ≤ Grade < 73C2.0
67 ≤ Grade < 70C-1.7
65 ≤ Grade < 67D+1.3
60 ≤ Grade < 65D1.0
Grade < 60F0.0