The Instructional goal of this course is to comprehensively understand financial and non-financial risk as well as the regulatory environment under which financial institutions operate. This course has been carefully designed to explain complex concepts in a digestible way. Its primary objective is to introduce students to the fundamental principles of risk management and prepare them to support risk management projects and initiatives. The goal is to bring practical, real-world insights to the academic environment, enhancing the learning experience for students through applications and implementations.

After studying this course, students should be able to: - Understand the approach to risk management through risk identification, measurement, control, and management. - Demonstrate knowledge of the range of financial institutions' risks, including market, credit, operational, liquidity, interest rate risks of the banking book, and other risks. - Learn how international regulation, particularly the Basel Accords, affects the management of these risks.

This course covers the fundamentals of risk management using theory and practice in line with the most recent regulations and up-to-date industry best practices. The course incorporates a blend of theory, anecdotes, graphics, project work, guest lectures, and exercises to provide context and relevance to a potentially esoteric financial topic. The goal is to bring practical, real-world insights to the academic environment, enhancing the learning experience for students through applications and implementations. The course is divided into 2 parts: Part 1: Foundations Part 2: Risk Models

Reference material (slides) will be explained and uploaded on the Luiss Learn platform before each lesson. Exams will be based on everything we discuss in class (slides, exercises, and additional material when not flagged as optional). We recommend “Risk Management and Financial Institutions,” sixth edition, by John C. Hull, as a reference book.

Theoretical lessons, exercises, guest speakers, project works

Written exam (theory and practice) and project work

Exam grade and degree starting grade