Risk and Reward: The Business of Financial Intermediation

 
Course Description:

This course examines the business of financial intermediation.  Financial intermediaries bring together issuers and investors and in the process of doing so financial intermediaries assume risks, for which they earn a return.  This course examines the principal business models used by financial intermediaries and the principal risks that financial intermediaries assume, both in the context of the changing regulatory environment facing financial institutions.

Contents:

Introduction
What is Financial Intermediation?
What is Risk and How Can It Be Managed?
Liquidity Risk
Interest Rate Risk
Other Market Risks
Credit Risk
Sovereign Risk
Operational Risk
Documentation Risk
Franchise (Reputation) Risk
Integration Risk (M&A)
Conclusion : Global Risk Management

Reading List:

Michel Crouhy, Dan Galai and Robert Mark: Essentials of Risk Management (New York McGraw Hill)

Credit Points:

5

Lecturer(s):

Dr. Thomas Huertas

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