Note: Please check your Spam or Junk folder, in case you didn't receive the email with verification code.
Unit–I
Introduction
The Concept of Risk, Nature, Need and Scope of Risk. Source, Measurement, Identification and Evaluation
of Risk. Types of risk – Product Market Risk and Capital Market Risk. Possible Risk Events, Risk Indicators,
Risk Management Process – Pre-requisites and Fundamentals. Misconceptions of Risk. An Integrated
Approach to Corporate Risk Management. Risk Management Approaches and Methods. A Comprehensive
view of Risk in Financial Institutions. Risk Reporting Process – Internal and External.
Unit–II
Measurement and Management of Risk
Value at Risk (VaR): The Concept, Computation, Stresses Testing, Back Testing.
Cash Flow at Risk (CaR): VaR and CaR to make Investment Decisions.
Managing Risk when Risk is Measured by VaR or CaR
Non-Insurance Methods of Risk Management-Risk Avoidance, Loss Control, Risk Retention and Risk
Transfer.
Asset-Liability Management (ALM): Evolution & Concept, RBI Guidelines.
Capital Adequacy. Management of Interest Rate Risk, Liquidity Risk, Credit Risk and Exchange Rate Risk.
Unit–III
Techniques and Tools of Risk Management: Forward Contracts and Futures Contracts
The Concept of Derivatives and Types of Derivatives. The Role of Derivative Securities to Manage Risk
and to Exploit Opportunities to Enhance Returns. Individuals, Speculators, Hedgers, Arbitrageurs and other
Participants in Derivatives Market.
Forward Contracts: Definition, Features and Pay-off Profile of Forward Contract. Valuation of Forward
Contracts. Forward Contracts to Manage Commodity Price Risk, Interest Rate Risk and Exchange Rate
Risk. Limitations of Forward Contract.
Futures Contracts: Definition. Clearing House, Margin Requirements, Marking to the Market. Basis and
Convergence of Future Price to Spot Price. Valuation of Futures Contract. Differences Between Forward
Contracts and Futures Contracts. Risk Management with Futures Contracts – the Hedge Ratio and the
Portfolio Approach to a Risk – Minimizing Hedge.
Syllabus
Unit–IV
Techniques and Tools of Risk Management: SWAPS
Definition, Types of Swaps. Interest Rate Swaps, Currency Swaps.
Interest Rate Swaps: Mechanics of Interest Rate Swaps. Using Interest Rate Swaps to Lower Borrowing
Costs, Hedge against Risk of Rising and Falling Interest Rates. Valuation of Interest Rate Swaps. Pricing
of Interest Rate Swaps at Origination and Valuing of Interest Rate Swaps After Origination.
Currency Swaps: Types of Currency Swaps. Valuation of Currency Swaps. Using Currency Swaps to Lower
Borrowing Costs in Foreign Country, to Hedge Against Risk of a Decline in Revenue, to Hedge Against
Risk of an Increase in Cost, to Hedge Against Risk of a Decline in the Value of an Asset, to Hedge Against
Risk of a Rise in the Value of a Liability. Pricing of Currency Swap at Origination and Valuing of Currency
Swap After Origination.
Unit–V
Techniques and Tools of Risk Management: Options
Definition of an Option. Types of Options: Call Option, Put Option, American Option and European Option.
Options in the Money, at the Money and out of the Money. Option Premium, Intrinsic Value and Time Value
of Options. Pricing of Call and Put Options at Expiration and Before Expiration. Options on Stock Indices and
Currencies. The Binominal Option Pricing Model (BOPM): Assumptions - Single and Two Period Models.
The Black and Scholes Option Pricing Model (BSOPM): Assumptions.
No Preview is available for this book
CategoriesManagement
Format PDF
TypeeBook