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NEW: Financial Risk Management Fundamentals II

A continuation of Financial Risk Management Fundamentals, this intermediate Financial Risk learning series is divided into four financial risk categories and should take you 4 weeks to complete. 

Watch the recorded sessions of Professor Steve Lindo as he covers advanced topics concerning market, credit, liquidity, and interconnected risk. You'll receive tailored instruction and exercises to complete while watching the session. Self study includes four different multiple choice quizzes to be completed after watching the videos . 

  Date & Time               Content Covered Prior Knowledge 
Week 1

Market Risk

  • Portfolio VaR calculation
  • Stress test of currencies hedged by forwards
  • Investment portfolio manager exceeds limit
Financial Risk Management Fundamentals I (Session 1)
Market Risk Concepts and Practices:
Bond valuation;
currency forward pricing,
derivatives valuation;
and stress testing
Week 2

Credit Risk

  • Credit analysis for fixed asset finance
  • Loss Given Default calculation for interest rate and currency swap and option counterparties
  • Expected loss calculation for portfolio of loans, bonds and swaps
Financial Risk Management Fundamentals I
(Session 2)


Credit Risk Concepts and Practices:

Financial statement analysis;
secured and unsecured lending;
counterparty exposure measurement;
probability of default/exposure at default/loss given default/expected loss calculation
Week 3

Credit Risk and Liquidity Risk

  • Expected loss of counterparty exposure exceeds limit
  • Funding mix for an industrial company
  • Investment mix for a financial institution
Financial Risk Management Fundamentals I
(Session 3)


Liquidity risk concepts and practices:
Contingent funding sources;
funding and investment liquidity buckets;
market-based investment liquidity criteria;
funding and investment liquidity diversification
Week 4

Liquidity and Interconnected Risk

  • Rebalancing a portfolio within investor's liquidity tolerance Risk
  • Assess contagion risk in an investment portfolio Interconnected Risk
  • Assess wrong way risk
Financial Risk Management Fundamentals I
(Session 4)


Interconnected risk concepts and practices:
wrong way risk

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