Assoc. prof. Aleksandar Naumoski, PhD.
|Course objectives (competences):
After completing and passing this course, students will be able to:
· identify and categorize different sources of risk (market, credit, operational risk);
· design a risk management process;
· understand the place and role of the risk management department in the organizational structure of the enterprise and the role of the risk manager;
· understand the importance that risk management has to shareholders and other stakeholders
· to establish the link between corporate governance and risk management;
· learn how to make the best business decisions, where the highest return is achieved for the level of risk taken
· perform risk measurement and assessment using appropriate techniques and models (VaR, scenario analysis, stress test, etc.)
· apply derivative instruments as a way of dealing with risks (interest rate, currency, credit derivatives, etc.)
· apply integrated risk management.
The course is intended to cover the ways in which different sources of risk are managed by corporations. The focus is on financial institutions risk management, also with special emphasis on non-financial companies. This course covers the broad enterprise risk management approach, i.e. the integrated risk management – the new managerial approach in risk management. Among the topics covered, a special weight is given to the market, credit and operational risk. Students will master the techniques of measuring different types of risk, assessing risk exposure and choosing the most appropriate approach to risk treatment. Special emphasis will be given to the application of derivative instruments to deal with interest rate, currency and credit risk.