UPDATED NOTES ON FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Updated notes on Principles of Risk Management & Insurance

This course provides a working definition of risk and a discussion of the various types of risk

Risk management is the systematic process of planning for, identifying, analyzing, responding to, and monitoring project risks. It involves processes, tools, and techniques that will help the project manager maximize the probability and results of positive events and minimize the probability and consequences of adverse events as indicated and appropriate within the context of risk to the overall project objectives of cost, time, scope and quality.

Financial risk management is a process to deal with key factors affecting interest rates,exchange rates and commodity prices.

To introduce students to the concepts of risk management and insurance key elements in business

Objectives: To provide a basic understanding of financial derivatives as well the application of derivatives, trading mechanism, uses as hedging instruments, risks involved and legal, controlling and regulatory framework.

Continuing technological innovation and competition among existing banking organizations and new entrants have allowed for a much wider array of banking products and services to become accessible and delivered to retail and wholesale customers through an electronic distribution channel collectively referred to as e-banking. However, the rapid development of e-banking capabilities carries risks as well as benefits. The Basel Committee on Banking Supervision expects such risks to be recognised, addressed and managed by banking institutions in a prudent manner according to the fundamental characteristics and challenges of e-banking services. These characteristics include the unprecedented speed of change related to technological and customer service innovation, the ubiquitous and global nature of open electronic networks, the integration of ebanking applications with legacy computer systems and the increasing dependence of banks on third parties that provide the necessary information technology. While not creating inherently new risks, the Committee noted that these characteristics increased and modified some of the traditional risks associated with banking activities, in particular strategic, operational, legal and reputational risks, thereby influencing the overall risk profile of banking.