Derivatives and Risk Management

The students will explore the methods for evaluating and managing the financial risk of companies and financial organisations. Particular emphasis is placed on fundamental pricing principles and the use of contemporary financial products in managing risk, including futures, forwards, options and swaps.

This course looks at existing policies and reflects on how these policies have been influenced by the substantial losses in financial markets from the past few decades, which have led to many companies forming risk management divisions of their own. By the end of the course, students will learn to understand the assessment and treatment techniques for the major categories of risk faced by all organizations and be equipped with problem-solving and analytical skills required to deal with financial risks. Students will also acquire knowledge of relevant frameworks and tools required to effectively manage these financial risks.