Risk Management is a course that explores the meaning, measurement, and management of financial market risk. The expected utility model will be developed to explore the effect of different attitudes toward risk. Management of financial market risk through the use of derivative securities will be examined in detail. Topics such as liquidity risk management, credit risk management, and value at risk will also be examined.
- Definition of risk.
- Measurement of risk.
- Attitudes toward risk.
- The nature of financial market risk.
- The use of forwards, futures, swaps, and options to manage financial market risk.
- Liquidity risk management.
- Credit risk management.
- Value at risk.
Methods of Instruction
Material will be presented within a lecture format.
Means of Assessment
Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.
At the end of the course, the successful student should be able to:
- analyze and interpret the meaning of risk;
- determine the implications of different attitudes toward risk;
- analyze the use of derivative securities in managing financial market risk;
- analyze issues in liquidity and credit risk management;
- analyze and understand the concept of value at risk.
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.