To provide students with a comprehensive perspective on risk management and pricing concepts, tools and techniques. To develop analytical thinking in understanding and implementing risk management practices/policies. To engage students in active discovery of risk management principles. To identify and explain the full risk management process in terms of identification of risks and associated potential costs.

At the end of the course students are expected to be able to realize, understand and master various state-of-the-art risk management theories and practices

The course is designed to introduce and discuss various risk management concepts, tools and techniques for banks and insurance companies. Using integrated approaches, the course will emphasize discussion on the design and implementation of risk management practices. Attention will be devoted also to the new developments in terms of financial regulation by explaining how the new regulatory framework will affect risk management in the next future.

John C. Hull, Risk Management and Financial Institutions, 5th Edition. John C. Hull, Options, Futures, and Other Derivatives (9th Edition) Szego (ed), Risk Measures for the 21th Century, Wiley Finance Series, 2004 Duffie, D., Singleton, K.J.. "Credit Risk: Pricing, Management, and Measurement". Princeton Series in Finance (2003)

The class will be based on lectures and readings. During the lectures PowerPoint slides will be used to facilitate students. All the material will be posted to the website prior to each class.

The overall assessment will be determined as follows: final exam (written): 100%. The final written exam will be done with "closed book". Students may not bring notes or other material, but only a calculator. All the questions in the exams are similar to the exercises at the end of each chapter of the textbook. Some questions are quantitative (i.e. require some computation).

It will be followed a policy of merit that rewards students more prepared.

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